Watch For Scams In Hurricane Florence's Wake

Last updated on Sunday, September 23, 2018

(INDIANAPOLIS) - In the wake of widespread damage caused by Hurricane Florence, Secretary of State Connie Lawson today cautioned investors to watch out for opportunistic investment or charitable scams.

"Natural disasters bring out the best and worst in people. While news stemming from Hurricane Florence has rightfully focused on the tireless efforts of first responders and neighbors helping neighbors, we know from experience that financial predators are lurking like snakes in the water to seek profit from the misfortune of others," said Secretary of State Connie Lawson. "Unsolicited investment offers to seek to capitalize on the aftermath of Hurricane Florence should be approached with extreme caution."

Secretary Lawson reminded investors to watch for red flags of hurricane-related scams, including unsolicited email, social media messages, crowdfunding pitches or telephone calls promoting investment pools or bonds to help storm victims, water-removal or purification technologies, electricity-generating devices and distressed real estate remediation programs. Scam artists may linger long after the storm has passed to prey on victims who anticipate receiving large lump-sum insurance settlements for damaged property and other losses.

Secretary Lawson offered three quick tips to help investors avoid disaster-related scams:

Delete unsolicited emails or social media messages and hang up on aggressive cold callers promoting hurricane-related investments, especially those from small companies touting unproven or new technologies or products.
Use common sense. Claims of guaranteed returns or low/no investment risk are classic red flags. Every investment involves some degree of risk.
Do your homework. Contact my office to check that both the seller and investment are licensed and registered. If not, they may be operating illegally.

For more information, contact the Secretary of State's office at 317-232-6681 or visit www.in.gov/sos/securities.

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