Posted on: Wednesday, September 19, 2001

Investors warned of scams playing on fears

Associated Press

WASHINGTON — State securities regulators are warning investors to be wary of financial scams playing on people's fears after last week's terrorist attacks.

Investors should be especially skeptical of offers to send their money offshore to "safe havens," said the North American Securities Administrators Association, which represents securities regulators across the continent.

The group said phone calls, advertisements or Internet postings touting commodities, exotic financial products or anti-terrorist technologies should raise red flags.

"In times of tragedy, confusion, fear and uncertainty, there are always those who will attempt to prey on the investing public," said Joe Borg, director of the Alabama Securities Commission and president of the state regulators' group.

The group is urging people to remember that if an investment appears to be too good to be true, it probably is.

NASAA urges investors to contact state securities regulators to make sure a seller is licensed and the product offered is registered.

In Hawai'i, consumers can contact the Securities Enforcement Branch of the Department of Commerce and Consumer Affairs at 586-2740.