Internet scams are top threat to investors, NASAA says

Internet scams are top threat to investors, NASAA says
Precious metals, cryptocurrencies and promissory notes are fraudster favorites in 2021, a survey of enforcement officials finds.
MAR 03, 2021

Internet- and social media-based frauds are the top threats to investors this year, according to enforcement officials surveyed by the North American Securities Administrators Association.

The group, which polled its state and provincial securities regulator members, said that in particular, investors should be on the lookout for investment schemes involving precious metals, cryptocurrencies, promissory notes and foreign exchange markets.

The survey found that self-directed individual retirement accounts, which lack the services and protection of traditional IRAs, can be fertile soil for scammers, especially those involving cryptocurrency-related and precious metals-based investments.

Enforcement officials said they expect to see a resurgence of high-yield foreign exchange and cryptocurrency-related schemes targeting investors this year that are disguised as membership or investment programs.

According to the NASAA survey, 82% of state and provincial securities regulators in the U.S., Canada and Mexico anticipate that bad actors will continue to attempt to leverage investor fear and anxiety related to changes in financial markets and the economy due to COVID-19 to illegally sell securities this year.

Latest News

Judge Oks release of $400 million to besieged GPB investors.
Judge Oks release of $400 million to besieged GPB investors.

Meanwhile, GPB senior executives' sentencing for fraud pushed to May.

Advisor moves: RBC, Merrill, Rockefeller announce elite additions
Advisor moves: RBC, Merrill, Rockefeller announce elite additions

RBC and Rockefeller strengthened their East Coast presence, including a $5 billion defection from JPMorgan, as Merrill welcomes a top-caliber advisor in California.

Vanilla lands wealth tech partnership with $560B Mariner
Vanilla lands wealth tech partnership with $560B Mariner

The estate planning tech provider will be providing 700 advisors access to the aggressively growth-focused RIA giant's platform.

Demand evaporates for State Street private-debt ETF with no new flows in weeks
Demand evaporates for State Street private-debt ETF with no new flows in weeks

Expectations meet reality in the democratization of private market investments as the pioneering ETF runs into first-mover challenges.

Raymond James looks to level up service with generative AI
Raymond James looks to level up service with generative AI

New in-house capability aims to empower advisors and associates with natural search to access vast data pool.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.