WASHINGTON STATE DEPARTMENT OF FINANCIAL INSTITUTIONS REMINDS INVESTORS TO BEWARE OF CON ARTISTS LOOKING TO PROFIT FROM FEAR AND UNCERTAINTY

FOR IMMEDIATE RELEASE FROM

THE WASHINGTON DEPARTMENT OF FINANCIAL INSTITUTIONS

March, 17, 2020

CONTACT:    

Lyn Peters, DFI Director of Communications
PH 360-902-8731, lyn.peters@dfi.wa.gov

William Beatty, Securities Administrator
PH 360-902-8760, securitiesadministrator@dfi.wa.gov

Olympia – In light of the ongoing developments related to the current coronavirus (COVID-19) situation, and its impact on financial markets, the Securities Division of Department of Financial Institutions (DFI) is reminding investors in Washington to beware of con artists seeking to capitalize on fear and uncertainty.

“We know con artists are opportunistic and use current events to cloak their schemes with an air of immediacy and legitimacy. Never make an investment decision without understanding what you are investing in, who you are doing business with, where your money is going, how it will be used, and how you can get it back,” Bill Beatty, Securities Administrator said. “Always ask if the salesperson and the security are registered with their state or provincial securities regulator.”

Beatty also said investors should be on the lookout for scam artists trying to use the market downturn and the coronavirus to scare investors into so-called “safer, guaranteed investments.”

“If you have concerns about your retirement accounts or investments, talk to your financial professional,” Beatty said. “Avoid making decisions based on panic or fear.”

To help investors identify common telltale signs of possible investment fraud, the Securities Division suggests investors ask 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 surrounding the investment? If the offer is legitimate, it will be there later. If someone offers you a “can’t miss” investment opportunity and puts you on the spot, 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.

“Make sure you have all the facts before you hand your money over to someone else to invest,” Beatty said. 

Investors are also encouraged to contact the Securities Division with any questions about the investment professional they are working with or the product being offered. The agency is available at 360-902-8760 and online at https://dfi.wa.gov/securities.

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About DFI ▪ www.dfi.wa.gov ▪ 360-902-8700 ▪ 877-RINGDFI (746-4334)

The Washington State Department of Financial Institutions regulates a variety of financial service providers such as banks, credit unions, mortgage brokers, consumer loan companies, payday lenders and securities brokers and dealers. The department also works to improve financial education throughout Washington through its outreach programs and online clearinghouse www.dfi.wa.gov/financial-education. In addition to posting information about licensees and administrative actions, DFI uses the Web and social media to provide financial education information: www.twitter.com/FinEd4All ■ www.twitter.com/DFIConsumers ■ www.youtube.com/user/WADFI ■ www.homeownership.wa.gov

 

About the Division of Securities ▪ www.dfi.wa.gov/sd ▪ 360-902-8760 ▪ 877-746-4334, x 8760

The Division of Securities regulates securities investments, franchises, business opportunities, and off-exchange commodities sold in Washington and the firms and individuals that sell these products or provide investment advice. The Division handles complaints, conducts investigations, and takes appropriate enforcement actions to protect investors and combat fraud.

CHA Washington