The Trinidad and Tobago Securities and Exchange Commission (TTSEC) is reiterating a warning to the public to exercise heightened caution amid the continued rise in investment scams, particularly those perpetrated through social media platforms and digital messaging applications.
‘This marks the Commission’s sixth official public alert on this issue, following earlier updates, and underscores the growing threat posed by increasingly sophisticated fraudulent investment schemes targeting innocent individuals,’ the TTSEC said in a statement.
It said despite the Commission’s ongoing public awareness efforts and previous warnings, scammers continue to adapt their tactics, using fake social media profiles, impersonation of legitimate financial institutions and professionals, fraudulent investment advertisements, and deceptive online communications to gain the trust of potential victims.
‘All members of the public are encouraged to remain vigilant, verify investment opportunities before committing any funds, and be especially cautious of offers promoted online that promise guaranteed or unusually high returns.’
TTSEC said that among the red flags, warning signs and evolving scam tactics the public should be aware of, include scammers use social media accounts with stolen or generic photos, minimal information, and vague content to gain trust as well as ‘unrealistic returns’ in which scammers make promises of people being able to earn ‘earn $30,150 on a $2,000 investment in 2 hours’.
It said that these are designed to lure you in with impossible returns, warning people also of responding to an ad or post, in which ‘scammers shift the conversation to private messaging apps, where impersonators posing as ‘investment representatives’ give false assurances’.
‘Legitimate investment firms generally require funds to be deposited into accounts held in the name of the company. If you are instructed to send money to a personal bank account or to an individual claiming to act on behalf of the company, this may be a warning sign of an investment scam or other fraudulent activity.’
TTSEC said that people should also be wary of being promised that initially ‘there are no fees involved and that withdrawals are easy and fast,’ and that ‘after depositing funds, you may be given access to a fabricated investment platform, which shows exaggerated account balances to deceive you into thinking you’ve made significant profits’.
The TTSEC tells members of the public that before investing they should ‘be skeptical of unsolicited investment opportunities, especially on social media or messaging apps’ and ensure that the individual or entity and its promoters are registered with the TTSEC.
‘If the entity is not registered under the Securities Act … you risk losing your entire investment,’ the TTSEC warned.