Like a vulture circling its prey, scammers flock to disaster as a prime
target to break out a new scheme. With the waters from Hurricane Harvey
still flooding the streets of Houston and the surrounding areas, the Financial
Industry Regulatory Authority (FINRA) released an investor alert to provide
information on good practices to follow in order to protect yourself and
Warning Signs for Potential Hurricane Harvey Scams
Scammers often send out a barrage of unsolicited messages, texts, emails,
and phone calls related to the latest natural disaster, either to capitalize
on the goodwill of people by giving information on crowdfunding investments
connected to clean-up, rebuilding, and support efforts or to offer up
the chance to invest in technological or scientific advancements that
target current and future flood-related problems. Some common exploits include:
- Pressure to act immediately
- Comments about how low-priced stocks skyrocket in value compared to more
- Comments on affiliations or contracts with large companies or the federal
- Treating standard developments like working alongside a supplier like a
- Use of facts reported by known news outlets to boost claims of increasing
prices like some portion of the billions of dollars that will be used
to fix the damage caused by the hurricane will affect a company’s
- Predictions of rapid growth or price targets
As always, the best tactic is to take your time to investigate any potential
investment to protect yourself.
FINRA’s Broker Check is one of the most valuable resources potential investors have, as it
allows you to check out the registration status of any broker or investment
firm in the United States.
If you lost money through a scam, contact our investment fraud lawyers
at Meyer Wilson today. Since our firm first opened its doors nearly 20
years ago, we have helped over 1,000 victims fight for and recover the
compensation they deserve.
Send us your information through our online form for a free case evaluation, or call us at one of our offices located across the nation to discuss
your situation over the phone.