State urges caution in investments
State officials are reminding investors to be wary of fraudulent or high-risk speculative investment schemes in the wake of recent negative economic news and stock market volatility.
“Scamsters follow the news and often prey on investors’ fears to promote bogus investments with promises of high returns and little or no risk,” said Ken Ross of the state’s Office of Finance and Insurance Services. “We are concerned that investors may allow uncertainty over current market conditions to lead them into fraudulent investment schemes that could weaken or devastate their financial position, potentially wiping out the retirement security they worked so hard to build. A hasty decision often can make a bad situation worse.”
OFIS reminded Michigan investors to:
● Contact OFIS toll-free (877) 999-6442 or online www.michigan.gov/ofis if they believe that may have uncovered a fraudulent investment scheme.
● Hang up on aggressive cold callers and delete unsolicited e-mail messages promoting investments opportunities with little or no risk.
● Request written information about any investment; carefully review it or ask your financial adviser to evaluate it.
● Use common sense, get-rich-quick promises are usually signs of investment fraud.