The Indiana Securities Division is reminding Hoosier investors to be cautious of investment schemes.
The North American Securities Administrators Association recently released its annual list of top threats to retail investors. This year, the most critical threats included financial scams tied to emerging technologies, marketing tactics designed to play on emotions, and further attempts to capitalize on changes in the economy.
Indiana investors have fallen prey to frauds relating to all three of the top threats, especially fraud perpetrated online and those involving cryptocurrencies.
Regulators cited digital asset frauds as the top scheme presenting the most danger to the public with romance schemes being the second most-cited and social media and internet schemes as the third greatest threat.
Schemes using digital platforms are effective because scammers can use online communications to reach many potential victims quickly and efficiently. Additionally, some crypto cannot be traced and the identity of the receiver is anonymous. The most common telltale sign of an investment scam is an offer of guaranteed high returns with no risk.
The Indiana Securities Division says that before making an investment decision, ask questions, do your homework, and contact them at 317-232-6681 for more information.
