Sec. of State announces top investor threats for 2020

The top five investment products or schemes likely to trap Missouri’s investors in the new year, according to Secretary of State Jay Ashcroft, include cryptocurrency-related investment products and social media and internet-based investment schemes.

Secretary of State Jay Ashcroft announced the top five investment products or schemes likely to trap Missouri’s investors in the new year and recommended steps they can take to protect themselves from investment fraud.

The list was developed by surveying members of the North American Securities Administrators Association, of which the Securities Division of the Secretary of State’s Office is a member, to identify threats investors are likely to see in 2020. The following were most frequently identified by NASAA members as the top five areas of concern for the coming year:

· promissory notes;

· Ponzi schemes;

·real estate-related investments;

· cryptocurrency-related investment products; and

· social media and internet-based investment schemes.

“It is important for investors to understand what they are investing in and who they are investing with,” Ashcroft said. “Don’t be pressured to invest. If an offer sounds too good to be true, it probably is.”

Investment offers that sound “too good to be true” often share similar characteristics. The most common sign of an investment scam, according to a Secretary of State’s Office press release, is an offer of guaranteed high returns with no risk.

“All investments carry the risk that some, or all, of the invested funds could be lost,” states the release. “Many of the threats facing investors involve private offerings, which are exempt from federal securities registration requirements and are not sold through public stock exchanges.”

“Unregistered private offerings generally are high-risk investments and don’t have the same investor protection requirements as investments sold through public markets,” Securities Commissioner David M. Minnick said.

Investors should always ask if the salesperson and the investment are properly licensed or registered. This information can be confirmed by the Securities Division. Working with a properly licensed investment professional affords investors certain legal protections.

“For the same reasons you wouldn’t go to an unlicensed doctor or dentist, you should avoid unregistered investment salespeople and their products. Anyone offering to sell a security without a license is breaking the law and should be avoided,” Minnick said.

Information about each of the 2020 investor threats and contact information for all state and provincial securities regulators can be found on NASAA’s website at

Ashcroft’s Securities Division also offers free investor education materials and can be reached at (800) 721-7996 or online at

(0) comments

Welcome to the discussion.

Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.