In issuing a warning to consumers, the NASAA, said, “We know con artists are opportunistic and use current events to cloak their schemes with an air of immediacy and legitimacy. Never make an investment decision without understanding what you are investing in, who you are doing business with, where your money is going, how it will be used, and how you can get it back,” said Christopher Gerold, NASAA president and chief of the New Jersey Securities Bureau. “Always ask if the salesperson and the security are registered with their state or provincial securities regulator.”
Gerold warned that the investment offers that should be avoided are those that offer a high rate of return with no risk. “All investments carry risk that you may potentially lose some or all of your money. Anyone who says their investment offer has no risk is lying. No one can guarantee an investment return.”
Also, deals do not have to be accepted immediately, he said. “If the offer is legitimate, it will be there later. If someone offers you a ‘can’t miss’ investment opportunity and puts you on the spot, don’t be afraid to walk away,” he said. “Ask if the person offering the investment, and the investment itself, are properly licensed or registered.”