The North American Securities Administrators Association (NASAA) has released its annual list of financial products and practices that can trap unwary investors, many by taking advantage of investors troubled by economic uncertainty and volatile markets. This year’s list shows once again that con artists follow the news and seek ways to exploit the headlines to their advantage while leaving investors holding an empty bag. They like to offer investors an opportunity to get in on the ‘ground floor’ of new technology or ideas to help others and make a great economic return. Unsuspecting investors can be lured into these schemes, especially if they sound familiar or mirror what is being reported in the news. Products NASAA suggests people should be wary of energy investments, gold and precious metal investments, and promissory notes. In practices, the most popular traps are in affinity fraud, bogus or exaggerated credentials, mirror trading, private placements and securities and investment advice offered by unregistered agents. We will explore each of these further in upcoming blog posts. The best way for investors to protect themselves is to learn the warning signs of investment fraud and independently verify any investment opportunity and the background of the person and company offering the investment. The Nova Scotia Securities Commission cannot provide advice, but can provide background information about those who sell securities or give investment advice, as well as about the products being offered. Start by reading about the Red Flags of Fraud, and explore our website for more information. If you still have questions, call 1-855-424-2499. Related posts:Top 10 Investor Traps of 2009 The North American Securities Administrators Association has released their list…Natural Resource Investment Scams – Top 10 Investment Traps of 2009 Natural resource investment scams have been on the rise recently,…Life Settlements and New Investment Products Two more schemes on the list of the Top Investor…Recovery Room Schemes As if being victimized by investment fraud once was not…Leveraged Exchange-Traded Funds (ETFs) Leveraged ETFs were named among the most problematic on the…Tagged as: affinity, energy, fraud, NASAA, precious metals, private placement, scams, top 10 Share & Bookmark This Story! Bookmark on Delicious StumbleUpon Google Bookmarks Tip’d
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