NASAA Calls Out New Scams, Rotates Five of Top 10 Investor Threats

Attorney Advising Disclaimer

The North American Securities Administrators Association (NASAA) added five new schemes to its list of top threats to investors.

Leading the pack of new threats are proxy trading accounts, in which rogue brokers gain access and permission to trade in customer accounts and on their behalf. Improper discretionary trading is one source of abuse as is the most overt unauthorized trading category.

The NASAA also added digital currency to the list, stating that the possibility of becoming "virtually broke" as opposed to losing tangible currency or gold is significantly greater.

Self-directed IRAs are retirement accounts that requires its owner to make investment decisions and investments on behalf of the plan. Because the IRS requires that either a qualified trustee or custodian hold IRA assets on behalf of the owner and this custodian often offers various selection and investment options, a custodian has incredible access to and influence on the well-being of the IRA—and the associated funds involved.

Small businesses have benefited from the Jumpstart Business Startups Act, but so too have swindlers and their crowd-funding scams. These schemes are perpetrated by individuals looking to pool funds from a group of investors for any of a number of causes. The fundraising becomes illicit when the investment is misrepresented or changed without notifying participants. Crowd-funding is often solicited via the internet because of its ease and ability to reach many people.

NASAA's threat list also includes persistent dangers, such as private offerings, real estate investment schemes—particularly non-traded real estate investment trusts (REITs), high-yield investmentand Ponzi schemes and various other sources of fraud in which scammers feed off of the complexity of illegitimate investment options.

If you have invested with a broker or firm you suspect has engaged in any of the above or any other unlawful or illicit financial scheme, and this fraudulent scam has proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.

News: Top 10 investors threats expanded to 15 (USA Today) / Top Investor Threats (NASAA)

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