The US Securities and Exchange Commission has alerted investors to be “excessively attentive” to probable investments scams related to Hurricane Ida’s aftermath. This warning comes from SEC’s Office of Investor Education and Advocacy, with constantly issues investor alerts to warn investors about the recent investment frauds and scams.

Criminals will presumably set their targets on those who will get the allowance in the form of large products from various insurance companies as a direct result of Hurricane Ida’s damage.

Lastly addressed hurricane-related scams promised high returns for investing small sums in thinly-traded organizations that would have made enormous profits from cleanup and recovery efforts.

Such as, the SEC carries several administration actions against individuals and organizations who made false and misleading statements about alleged business opportunities in light of the damage caused by Hurricane Katrina in 2005, the SEC warning reads.

“Few of those cases involved pump-and-dump operations where swindlers utilized fake news to pump up the stock price of small companies so they could sell their own shares at artificially high prices.”  

How to Address and Secure Yourself from Scammers?

To secure yourself from investment unauthenticated attempts, once should demand anyone coming you with an investment opportunity if they’re licensed and if their investment is registered with the SEC or with a state. Their answers can easily be checked before committing to an investment by reaching out to the SEC or your state securities regulator.

The most important thing to remember is that any promises of fast and huge profits that come with little or no risk are classic signs of fraud. “Take a close look at your entire financial situation before making any investment decision, especially if you are a recipient of a lump sum payment. Remember, your payment may have to last you and your family for a long time.”

If you want to invest and have any questions, you can call the SEC’s Office of Investor Education and Advocacy at 1-800-732-0330 or ask for help using this online form.

How FBI Alerts of Hurricane-related Fraud?

This warning comes after the FBI’s New Orleans office issued two warnings in the last four days, alerting the public about an increased risk of swindlers trying to exploit the Hurricane Ida natural disaster. “Unluckily, the hurricane or natural disaster damage often facilitates the possibilities for attackers to scam assault victims and those who are helping victims with recovery,” the FBI warned.

The FBI also provided a set of measures those impacted by a natural disaster can take to avoid getting scammed, including to:

• Not reply to volunteered spam or emails.
• Be suspicious of individuals impersonating themselves over email as officials soliciting donations.
• Not click on links within an unsolicited email.
• Be cautious of emails claiming to contain pictures in attached files, as the files may contain viruses—only open attachments from known senders.
• Not provide personal or financial information to anyone who solicits contributions; giving such information may negotiate your identity and make you vulnerable to identity theft.
• Be careful of emails pretending to offer a profession for which you did not expressly apply.

Thoroughly research housing ads before sending money to a potential landlord.