Hurricane Florence May Leave Investment Scams in Its Wake, Regulators Warn

A recent alert from the Financial Industry Regulatory Authority (FINRA) details how investors can identify and protect themselves from investment scams associated with the cleanup or recovery of areas devastated by Hurricane Florence, reports Financial Advisor . "In addition to charity frauds, we often see investment scammers try to exploit a variety of hurricane-related opportunities," says FINRA's Gerri Walsh. The regulator says financial advisers need to be cognizant of the fact that investors, particularly seniors, may be targeted by aggressive sales tactics and unsolicited emails, texts, phone calls, messaging apps, and social media communications promising high returns, lucrative contracts, cutting-edge technology, or other claims tied to thriving after the disaster. The most frequent types of scams pitch the stocks of companies that claim to be associated with cleanup and rebuilding efforts, often promoting alleged breakthroughs in science and technology to address current and future flood-related issues. "Investigate before you invest," FINRA recommends. "Never rely solely on information received in an unsolicited email, text message or cold call from an 'analyst' or 'account executive.'" State securities regulators also have issued an advisory that investors be aware of opportunistic investment or charitable scams in the wake of the widespread damage caused by Hurricane Florence.