Oregon agency warns investors not to chase crypto, market losses through online scams, ‘finfluencers’
SALEM, Ore. (KTVZ) – The Oregon Department of Financial Regulation is warning investors to avoid online scams that promise impossible-to-achieve rates of return to compensate for recent market and crypto-related losses, especially as “finfluencers” become more prominent across social media channels.
Recently, the division has become aware of several online scams presented as “education” and “guidance” to investors in what are actually management schemes. These schemes make many misrepresentations about the investment and its returns through TikTok and Discord, making it difficult to later track down these misrepresentations and the people involved. The investment offers are often aimed at people who have recently lost money investing in cryptocurrency or stocks.
“Scammers lure investors with promises of making up for past losses,” said TK Keen, DFR administrator. “Unfortunately, this has corresponded with the rise of financial influencers who may not be regulated by the government as financial professionals and may have undisclosed conflicts of interest.”
According to the North American Securities Administrators Association (NASAA), a fin influencer is a person who, by virtue of their popular or cultural status, has the ability to influence the financial decision-making processes of others through campaigns or recommendations on social media. They may attempt to influence potential investors by publishing posts or videos to their social media accounts, often stylized to be entertaining so that the post or video will be shared with other potential investors.
As has been widely reported, cryptocurrencies continue to decline from previous record highs and some cryptocurrencies have completely failed. The volatility of these types of investments can make them risky choices for investors.
“The fundamentals of investing haven’t changed,” Keen said. “Do your homework, make sure you understand the investment and its risks, and don’t be swayed by those who promise unrealistic returns, regardless of their social media status.”
Consumers with questions about these arrangements can call the department’s advocates at 866-814-9710 (toll-free).
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About Oregon DFR: The Division of Financial Regulation is part of the Department of Consumer and Business Services, Oregon’s largest business regulation and consumer protection agency. Visit www.dcbs.oregon.gov and dfr.oregon.gov.
