Securities Division cautions investors about Internet risks
September 25, 2011
Social media provide high-tech platforms to prey on consumers
Nashville, TN – As people increasingly turn to online social networking sites to interact with one another, so have con artists who lurk in the virtual shadows with shady investment deals to pitch to unsuspecting investors, the Department of Commerce and Insurance (TDCI) Securities Division said this week.
The Securities Division cautions investors to make sure they know who they are doing business with when considering investments pitched through “friends” on social networking sites. “Just because someone has ‘friended’ you online does not mean that person is your friend when it comes to investing,” Securities Division Assistant Commissioner Daphne D. Smith said. “The person behind the profile may be deliberately mimicking your likes and interests to lure you into a scam.” [Read more]
