Indiana Secretary of State joins task force cracking down on COVID-19 investment scams

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INDIANAPOLIS, Ind. (WEHT) – The Indiana Secretary of State’s Office announced today that it has joined an international enforcement task force organized by the North American Securities Administrators Association (NASAA) to investigate fraudsters looking to capitalize during the novel coronavirus COVID-19 pandemic.

“We are proud to join our colleagues in NASAA’s COVID-19 Enforcement Task Force,” “Investment schemes related to COVID-19 are a significant threat to Hoosier investors, and fraudsters need to know that my office is dedicated to effectively protecting investors from COVID-19 investment fraud,” said Secretary of State Connie Lawson.

The task force consists of state and provincial securities regulators and was formed to identify and stop potential threats to investors stemming from the COVID-19 pandemic. Task force members are using online investigative techniques to identify websites and social media posts that may be offering or promoting fraudulent offerings, investment frauds, and unregistered regulated activities.

A critical component of fighting fraud is investor awareness. To help investors identify common telltale signs of possible investment fraud, the Securities Division suggests three questions to ask 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 of detailed information surrounding the investment?  If someone offers you a “can’t miss” investment opportunity and pressures you to invest right now, 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.

To assist in protecting investors from COVID-19 investment scams, the Division also encourages public reporting of suspected fraudulent COVID-19 investment offers. Investors who see or suspect they fell victim to COVID-19 related investment scams can contact the Division at securities.sos.in.gov.

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(This story was originally published on May 6, 2020)

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