As the need for surgical masks, gowns and ventilators increases during the COVID-19 pandemic, many companies may take advantage of investors trying to make profits.
The Pennsylvania Department of Banking and Securities is warning everyone about deceptive investment schemes targeting everyone.
The fraudulent schemes are as follows:
• Many suspected deals will falsely purport to raise capital for companies manufacturing surgical masks and gowns, producing ventilators and medical equipment or manufacturing vaccines or other miracle cures.
• The deceptive practices guarantee investment returns, more like a get-rich-quick scheme.
• Often times, retirees and senior citizens are promised a quick financial fix.
The department suggests investigating before you invest. Search the company’s name and service or products online before you invest.
Avoid phishing scams. Many times scam emails may look real, but never open an attachment or link from an unsolicited email and never share financial or sensitive information without verifying the request.
The old adage, as we all know, is if it sounds too good to be true, it probably is. Ask questions about the investment and evaluate the risks.
Also, be aware of economic relief schemes. With news that the federal government will be sending checks to the public as part of the economic stimulus effort, scammers will no doubt increase efforts to steal your money. DO NOT give your personal information to anyone claiming to be from the government in relation to receiving a stimulus check.
In addition, never fall for anyone asking you to prepay taxes or fees on the money, or pay any type of charge, in order to receive the money. That person is likely trying to defraud you.
Scammers may also take advantage of the decline in the public securities markets by selling fraudulent investments in gold, silver and other commodities that are not tied to the stock market. These assets may look attractive, however scammers may conceal hidden mark-ups and the illiquidity of the assets may prevent retail investors from the selling the asset for fair market value.
Another avenue of fraudulent practices is with real estate investments. Many times, investments may prove appealing because the real estate market has been strong and low interest rates have been increasing the demand of housing.
Scammers often promote these schemes as safe and secure, claiming real estate can be sold and the proceeds can be used to cover any losses. However, real estate investments can be risky, which may lead to negatively impacting the performance of the products.
Finally, be alert for any charity schemes. Before donating, you should verify any charity that is raising money for the sick. This a popular way for thieves to steal money. If you want to donate to a specific cause, you should work with a legitimate, established organization and donate using a credit or debit card or purchase a gift card.
You can find out more information from Pennsylvania Department of Banking website at www.dobs.pa.gov.
Remember if you have a state-related concern, my office is always available to you. You can email me at RepFlynn@pahouse.com or call my office at 570-342-4348
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