PHOENIX— The Arizona Corporation Commission has released a list of the top five investment products or schemes likely to trap investors in the new year. The Commission is offering recommended steps investors can take to protect themselves from fraud.
According to the Commission, the list was developed by surveying members of the North American Securities Administrators Association (NASAA), of which the Corporation Commission is a member. The survey revealed the major threats investors are likely to see in 2020.
The following were most frequently identified by NASAA members as the top five areas of concern for the coming year:
- Promissory Notes
- Ponzi Schemes
- Real Estate-related Investments
- Cryptocurrency-related Investment Products
- Social Media/Internet-based Investment Schemes
“All investments involve a degree of risk. Investors can help protect themselves by taking time to research both the investment product and the person selling it. It is important for investors to understand what they are investing in and with whom they are investing,” Chairman Robert “Bob” Burns said.
| From the Corporation Commission:
Investors should always ask if the salesperson and the investment itself are licensed or registered to sell investments in Arizona. This information can be confirmed by the duty officer at the Corporation Commission’s Securities Division by telephone at 602-542-0662 or by email, SecuritiesDiv@azcc.gov. |
The Commission is urging investors not to fall for promises of guaranteed high returns with little to no risk or deals pitched with a false sense of urgency or limited availability.
Commissioners warn that investment offers that sound too good to be true usually are exactly that—too good to be true.
[metaslider id=65385]