The Oklahoma Department of Securities 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,” Melanie Hall, Administrator of the Department, said. “Investment schemes related to COVID-19 are a significant threat to investors in Oklahoma and fraudsters need to know that the Oklahoma Securities Department is dedicated to effectively protecting investors from COVID-19 investment fraud.”
The agency is a member of NASAA, the membership organization of state and provincial securities regulators in the United States, Canada and Mexico. 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 activities.
To assist in protecting investors from COVID-19 investment scams, the agency 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 agency at (405)280-7700 or at www.securities.ok.gov.
“Reporting suspicious COVID-19 related investment offers is important to help the Securities Department investigate and prosecute illegal activities and protect our citizens from falling victim to a financial fraud in these unprecedented times,” Hall said.
A critical component of fighting fraud is investor awareness. To help investors identify common telltale signs of possible investment fraud, the Securities Department 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 not telling the truth. 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 away, don’t be afraid to walk away.
Third, is the person offering the investment, and the investment itself, properly registered? For the same reasons you wouldn’t go to an unlicensed doctor or dentist, you should avoid unregistered investment salespeople and their products.
“Make sure you have all the facts before you hand your money over to someone else to invest,” Hall said.