Staff
The Texas State Securities Board (TSSB) released an annual list of top investor threats and urged caution before purchasing popular and volatile unregulated investments — especially those involving cryptocurrency and digital assets. TSSB also announced guidance for investors, including steps to take to protect them from fraud in the new year.
TSSB revealed that investments related to cryptocurrencies and digital assets are 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.
The top 2022 threats were determined by a survey of securities regulators conducted by the North American Securities Administrators Association (NASAA). The annual survey is designed to identify the most problematic products, practices, or schemes facing investors. The following were cited most often by state and provincial securities regulators:
- Investments tied to cryptocurrencies and digital assets;
- Fraud offerings related to promissory notes;
- Money scams offered through social media and internet investment offers; and
- Financial schemes connected to Self-Directed Individual Retirement Accounts.
Many of the fraud threats facing investors today involve private offerings, as federal law exempts these securities from registration…
