The Wahkiakum County Eagle - Established as The Skamokawa Eagle in 1891

Consumers warned of new con artists

 

March 26, 2020



In light of the ongoing developments related to the current coronavirus (COVID-19) situation, and its impact on financial markets, the Securities Division of Department of Financial Institutions (DFI) is reminding investors in Washington to beware of con artists seeking to capitalize on fear and uncertainty.

“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,” Bill Beatty, Securities Administrator said. “Always ask if the salesperson and the security are registered with their state or provincial securities regulator.”

Beatty also said investors should be on the lookout for scam artists trying to use the market downturn and the coronavirus to scare investors into so-called “safer, guaranteed investments.”

“If you have concerns about your retirement accounts or investments, talk to your financial professional,” Beatty said. “Avoid making decisions based on panic or fear.”

To help investors identify common telltale signs of possible investment fraud, the Securities Division suggests investors ask three questions before making a new investment.

First, is the investment being offered with a guaranteed high return with little or 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.

Second, is there a sense of urgency or limited availability surrounding the investment? 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.

Third, is the person offering the investment, and the investment itself, properly licensed or registered? For the same reasons you wouldn’t go to an unlicensed doctor or dentist, you should avoid unregistered investment salespeople and their products.

“Make sure you have all the facts before you hand your money over to someone else to invest,” Beatty said.

Investors are also encouraged to contact the Securities Division with any questions about the investment professional they are working with or the product being offered. The agency is available at 360-902-8760 and online at https://dfi.wa.gov/securities.

 

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