The North American Securities Administrators Association (NASAA) published its annual list of top investor threats and urged caution before purchasing "popular and volatile unregulated investments, especially those involving cryptocurrency and digital assets".
The threats to investors were determined by surveying North American securities regulators to identify the most problematic products, practices or schemes. 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.
Enforcement Section Committee Co-Chair Joseph P. Borg, Alabama Securities Commission Director said: “By far, NASAA’s securities regulators revealed that investments related to cryptocurrencies and digital assets is 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.”