(NAPSA)—Financial fraud routinely follows on the heels of natural disasters like hurricanes, wildfires and earth- quakes—but you don't haveto be victim. After a disaster, you mayreceive un- solicited phonecalls, e-mails and texts, including from messaging apps, about investments that exploit a variety of disaster-related opportunities. Best bets for scams include stock or crowdfunding investments associated with cleanup, rebuilding, and break- throughsin science and technology that purport to address current and future issues related to the disaster. Whileit is conceivable that some of the claims are true, many could turn out to be bogus— or even scams. Spotting Scams Unsolicited communications about investments that exploit natural disasters frequently include price targets or predictions of swift and exponential growth and might even cite respected news sources to bolster those claims. ‘They might also claim the company has contracts with government agencies Stop and think before you invest in disaster-related financial opportunities. It could be a disaster for you. stock for disseminating a report on the company. 3. Find out where the stock trades. Most unsolicited stock recommendations involve stocks that can't meet the listing requirements of ‘The Nasdaq Stock Mar- ket, The New York Stock Exchange or other U.S. stock exchanges. Instead,these stocks tend to be quoted on an over-thecounter (OTC) quotation platform. Companies that list their stocks on registered exchanges must meet minimum listing standards. For example, they must have minimum amounts of net assets and minimum numbers of shareholders. In contrast, companies or well-known companies. More than anything, these pitches include pressure to invest immediately, suggesting “You must act now!” quoted on the OTCBB or OTC Link generally do not have to meet any minimumlisting standards (although companies quoted on the OTCBB, OTC To avoid potential scams, make sure places are subject to some initial and How To Avoid Getting Scammed you get the information you need to make a wise investmentchoice. 1. Before you invest, ask and check. Neverrely solely on information from an unsolicited e-mail, text message or cold call from an “analyst” or “account executive” promoting a stock. It’s easy for companies or their promoters to make glorified claims about new products, lucrative contracts, or the company’s rev- enue, profits or future stock price. Ask questions about the investment and use FINRA BrokerCheck at BrokerCheck. FINRA.org to check registration status and other information on investment professionals and firms. 2. Find out who sent the message. Many companies and individuals who tout stock are corporate insiders or paid stock promoters. Look for statements (usually found in the fine print) that indicate cash payments orthereceipt of Links OTCQX and OTCQB market- ongoing requirements). 4. Read a company’s SEC filings. Most public companies file reports with the SEC. Check the SEC’s EDGAR database at www.SEC.gov/EDGARto find out whether the companyfiles with the SEC. Read the reports and verify any information you have heard about the company. But remember, the mere fact that a company hasregistered its securities or hasfiled reports with the SEC doesn’t mean the company will be a good investment. If youre suspicious aboutan offer or if you think the claims might be exaggerated or misleading, you can contact FINRA at www.FINRA.org/Investors/ File-Complaint. Learn More To learn more about how to protect your money, visit the FINRA Foundation’s website: www.SaveandInvest.org.
