With the United States on the brink of war with Iraq and heightened warnings of terrorism, the North American Securities Administrators Association cautions that investors should not make panicky financial decisions.
On Tuesday, NASAA repeated warnings, issued in the wake of the September 11 attacks and at the height of concerns about Year 2000 computer glitches, to beware of con artists seeking to capitalize on fear and uncertainty.
“Beware of high-pressure pitches for non-traditional investments such as strategic metals, foreign currency, oil and gas investments or tiny companies that supposedly have products or technology to combat chemical or biological terrorism or whatever else is in the headlines,” said Christine Bruenn, president of NASAA and Maine’s securities administrator.
In the wake of the September 11 attacks, U.S. state and federal securities regulators warned about and took action against promoters of companies touting anthrax detectors and “revolutionary” security-enhancing technologies. In the run-up to Y2K, state regulators said hucksters tried to exploit fears to sell investments in precious metals, emergency preparedness scams and phony technology companies.
Bruenn urged investors to hang up on aggressive cold callers promoting “safe” investments such as precious metals, oil and gas schemes and to ignore tips about tiny companies with new anti-terrorist technologies or products.
She reminded investors to contact regulators to check that both the seller and the investment are licensed and registered, and request written information about any investment.