NASAA warns investors about scams

According to the Association of Securities Administrators of North America (NASAA), among the five main threats of investors for 2020 are cryptocurrencies.

NASAA warns investors about scams

NASAA against crypto scams

On December 23, NASAA presented an official report exposing the five main products or schemes that have the highest likelihood of scamming investors in 2020. The study is based on opinions of veteran investors and opinions of state regulators and provincials of the United States, Mexico and Canada.

The president of NASAA, Christopher Gerold, said that the main characteristic in the scams related to the cryptocurrencies is the guarantee of returns of investment without risks for the investors. According to Gerold, “it is important that investors understand what they are investing in and with whom they are investing. Do not fall for promises of high returns guaranteed with little or no risk or offers presented with a false sense of urgency or limited availability."

In mid-2018, NASAA began to invest investment products related to cryptocurrencies and initial coin offerings (ICOs). To date, the authority has continued its mission to protect consumers who invest in cryptocurrency markets and has conducted more than 200 investigations in this regard.

It is estimated that losses due to scams and robberies related to the cryptocurrency market have increased over the past few years. It is estimated that in 2018 losses due to scams and robberies amounted to USD 1.7 billion and in 2019 it is estimated that the figure amounted to USD 4.4 billion.