Scam warning issued for investors amid COVID-19 pandemic

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MONTGOMERY, Ala. (WIAT) — The Alabama Securities Commission issued a news release Saturday morning, warning investors to be on the lookout for an increase in fraudulent investment schemes during the coronavirus pandemic.

The ASC warning said that investors need to pay close attention to investment opportunities that are related to COVID-19, for example raising money for companies making surgical masks/gowns, ventilators, vaccines, pharmaceutical drugs, etc.

“Scammers will begin perpetrating schemes that require little or no advance planning and minimal sophistication,” Director Joseph P. Borg said. “Most will simply be old scams dressed in contemporary clothing.”

According to the news release, scammers are expected to target investors for financial gain based on the current economy and concerns in the regulated securities market, claiming to guarantee returns on investments.

For more information and recommendations from the ASC, click here.

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