The SEC Office of Investor Education and Advocacy ("OIEA") cautioned investors, specifically those who receive lump sum insurance payouts, on potential investment scams related to Hurricane Ida.
The OIEA explained that natural disasters can trigger investment scams including (i) promoters that, through email and social media reports, tout recovery and cleanup companies, (ii) trading programs that falsely promise high returns and (iii) Ponzi schemes. The OIEA recommended that investors treat any such offers with skepticism and do thorough research in order to protect themselves.
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