Nebraska warns of investment scams surrounding coronavirus fears
The Nebraska Department of Banking and Finance (NDBF) is urging Nebraskans to beware of con artists looking to capitalize on coronavirus fears 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,” said NDBF Deputy Director Claire McHenry. “Always ask if the salesperson and
the security are registered with their state or provincial securities regulator.”
Deputy Director McHenry 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,” Deputy Director McHenry said. “Avoid making decisions based on panic or fear.”
To help investors identify common telltale signs of possible investment fraud, NDBF has provided three
questions to ask before making a new investment.
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.
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, do not be afraid to walk away.
For the same reasons you would not go to an unlicensed doctor or dentist, you should avoid unregistered investment salespeople and their products.
More information about the laws governing the securities industry in Nebraska can be found on the