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NASAA Reports Top Investor Threats for 2022

Business man trader investor analyst using mobile phone app analytics for cryptocurrency financial stock market analysis analyze graph trading data index investment growth chart on smartphone screen.
January 17, 2022

The North American Securities Administrators Association (NASAA) recently published its annual list of top investor threats. At the top of the list are cryptocurrency and digital assets – which isn’t surprising considering their volatility and unregulated status.  

As stated by Enforcement Section Committee Co-Chair and Alabama Securities Commission Director, Joseph P. Borg: “By far, NASAA’s securities regulators revealed that investments related to cryptocurrencies and digital assets is our top investor threat. Stories of ‘crypto millionaires’ attracted some investors to try their hand at investing in cryptocurrencies or crypto-related investments this year, and with them, many stories of those who bet big and lost big began appearing, and they will continue to appear in 2022.”

“Before you jump into the crypto craze, be mindful that cryptocurrencies and related financial products may be nothing more than public facing fronts for Ponzi schemes and other frauds,” said Enforcement Section Committee Vice-Chair Joseph Rotunda, Texas State Securities Board Enforcement Division Director. “Investments in cryptocurrency trading programs, interests in crypto mining pools, crypto depository accounts and securitized tokens should be seen for what they are: extremely risky speculation with a high risk of loss.”

NASAA compiled its list by surveying U.S. securities regulators, who also identified fraudulent social-media and internet-investment schemes, promissory-note offerings, and schemes relating to self-directed retirement accounts. NASAA further found that many of the fraud threats facing investors involve private offerings because these securities are not subject to federal registration requirements, and federal law pre-empts states from enforcing investor-protection laws.

Melanie Senter Lubin, NASAA President and Maryland Securities Commissioner, stated: “The most common telltale sign of an investment scam is an offer of guaranteed high returns with no risk. It is important for investors to understand what they are investing in and with whom they are investing.  Education and information are an investor’s best defense against investment fraud.”

If you have suffered investment losses, you may wish to consult with an attorney. The securities attorneys at Morgan & Morgan’s Business Trial Group are here to help. The securities attorneys at Morgan & Morgan’s Business Trial Group are here to help. Please contact us a 888.744.0142 or visit us online for a free consultation.

The Business Trial Group at Morgan & Morgan helps investors recover their losses on a contingency basis. We are only paid if we successfully recover money for you. We have helped investors recover tens of millions of dollars of investment losses.

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