NASAA Warns of Post-Hurricane Scams After Florence

(CN) - The North American Securities Administrators Association is warning investors about potential scams associated with the fallout from Hurricane Florence.

NASAA President and Director of the Alabama Securities Commission Joseph P. Borg issued a warning to raise awareness of unsolicited investment offers that take advantage of investors through scams by unsolicited email, phone calls and social media messages.

“Natural disasters bring out the best and worst in people. While news stemming from Hurricane Florence has rightfully focused on the tireless efforts of first responders and neighbors helping neighbors, we know from experience that financial predators are lurking like snakes in the water to seek profit from the misfortune of others,” Borg said.

Borg says investors need to be especially wary of calls that promote investment pools or bonds to help storm victims, water removal and energy generating technologies.

According to the NASAA website, “scam artists may linger long after the storm has passed to prey on victims who anticipate receiving large lump-sum insurance settlements for damaged property and other losses.”

Alongside investment scams, charitable scams are also a major issue during the hurricane relief period, the NASAA says.

“There will be fraudulent solicitations for charities in Florence’s wake,” Borg said. “Donors are reminded to do their research. As with any charitable contribution, those who want to contribute to relief efforts should send contributions to charitable organizations that are registered properly with state authorities and with an established track record of getting donations to victims.”

The NASAA recommends that anyone looking to make post-disaster investments should contact their securities regulator to make sure that both the seller and investment are registered.

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