Don't fall for these top 5 investment scams in 2020, Maine official says
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Maine's securities administrator has released a list of the top five financial products or schemes that should concern investors in the new year.
The state Office of Securities on Monday released its prediction of the top five financial products or schemes that will threaten Maine investors in 2020.
Maine Securities Administrator Judith Shaw said in a news release that the top concerns, identified by a national survey of state securities officials, were:
- Promissory notes
- Ponzi schemes
- Real estate-related investments
- Cryptocurrency-related investment products
- Social media/internet-based investment schemes.
The most common sign of an investment scam is an offer of guaranteed high returns with no risk, Shaw said. Many of the threats facing investors involve private offerings, which are exempt from federal securities registration requirements and don’t have the same investor protections as investments sold through public markets.
"It is important for investors to understand what they are investing in and who they are investing with. Don't fall for promises of guaranteed high returns with little to no risk or deals pitched with a false sense of urgency or limited availability," said Shaw.
The Office of Securities is an agency within Maine’s Department of Professional and Financial Regulation.
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