As Hurricane Sandy cleanup begins, investors across the nation are urged
to pay attention to disaster-related investments and the potential for
investment fraud. Unfortunately, some fraudsters see hurricane victims
and those who want to help as easy prey for investment scams. As investment
fraud lawyers, we would like to take the time to explain a little bit
more about the types of scams that follow hurricanes, earthquakes, and
other natural disasters.
What Kinds of Scams Accompany Natural Disasters Like Hurricane Sandy?
The most prevalent types of investment scams after natural disasters include:
Scams targeting victims. Fraudsters may go after hurricane victims with high-yield investment fraud or
Ponzi schemes that claim they can quickly provide high returns, which can be an attractive
offer if you’ve recently lost everything. Some schemes may try to
affinity fraud” or appeal to your sense of community to get you hooked. All of
these schemes popped up after Hurricane Katrina; it’s likely the
same will be true of Hurricane Sandy.
Scams targeting those who want to help. Some con artists may use the recent news of hurricane damage as an excuse
to pitch fake investments in various cleanup efforts or rebuilding projects.
If someone is pitching you any investment related to a recent natural
disaster, you should be wary and consider it a red flag.
Why Do Natural Disaster Investment Scams Happen?
Unfortunately, some con artists look at the aftermath of a natural disaster
and see an opportunity to line their own pockets. By appealing to a sense
of what has been lost and promising a better future, fraudsters take advantage
of vulnerable victims and lure them into scams. Fraudsters may also take
advantage of the large insurance payments for damage and the many inexperienced
investors who hope to rebuild and plan for the future.
And, of course, con artists will commonly appeal to investors from outside
of the area who feel for the victims and want to help. They may pressure
you to invest in the rebuilding effort or attempt to make you feel bad
for wanting to sleep on it or do some background research.
How to Get Help with Hurricane Sandy Investment Fraud
And, if you need help after losing money in a Ponzi scheme or investment
scam related to a natural disaster, please feel free to give us a call
to schedule a completely free and confidential consultation with an experienced
investment fraud lawyer today.