October 28, 2021
Understand Risks and Markets before Reacting to Internet Hype
On Wednesday, October 6, NFA and the CFTC held a free webinar entitled, Virtual Currency Frauds: Spotting and Avoiding Common Scams as part of World Investor Week. World Investor Week is a week-long global campaign promoted by the International Organization of Securities Commissions (IOSCO) to raise awareness about the importance of investor education and protection.
During the webinar, representatives from NFA and the CFTC discussed, among other things:
- Avoiding “get rich quick” and “can't lose” schemes;
- Researching investment opportunities independently;
- Understanding the risks that exist in all investments, including initial coin offerings and crypto-assets;
- Conducting due diligence when considering investments; and
- Recognizing the red flag warning signs of online investment fraud.
Learning Modules: Follow a Course to Smart Investing
In an effort to educate the public on the basics of investing smartly, FINRA offers a series of six brief learning modules on its website entitled Follow a Course to Smart Investing. The modules cover topics including setting investment goals, risk and return, diversification and fees and commissions, among others.
Information courtesy of FINRA
Investor Alert: Natural Disaster Investment Scams
The SEC advises investors to be on the lookout for investment scams related to natural disasters. Hurricanes, floods, oil spills and other disasters often give rise to investment scams, since they provide opportunities for scammers to tout companies purportedly involved in cleanup efforts and trading programs falsely guaranteeing high returns on investments.
Information courtesy of the SEC
Informed Investor Advisory: Protecting Your Online Accounts
As financial technology has evolved, it has given consumers the ability to save and invest online using their phones, tablets and computers. These modern financial conveniences, however, come with risk. Scammers always look for new ways to get into a consumer’s pocketbook, electronically or otherwise. NASAA warns investors to be cautious when using the conveniences offered by new and evolving financial technology in order to protect their financial information.
Information courtesy of NASAA
Recent Enforcement Actions
- Freight Investor Services Limited
- Halifax America LLC, Devin D. Brady and Harmik Iranossian
- K-Ratio Advisory LLC, K-Ratio Brokerage LLC and Kyle David Lintner
- Cayler Capital LLC
- ED&F Man Capital Markets Limited
- Metal Edge Partners LLC
- Roditi & Roditi LLC and Guillermo Roditi Dominguez
- Tullett Prebon Financial Services LLC