| Coronavirus scams, feeding off investor fears, mimic fraud from the 2008 financial crisis | | |  | WED, MAR 25, 2020 | | | | Fraudsters will always find a way to take advantage of the fear around big headline news, like the coronavirus, to steal money from unsuspecting consumers. In fact, experts warn that coronavirus scams are emerging, and many look similar to frauds from the 2008 financial crisis.
Government agencies, like the Federal Trade Commission and Federal Deposit Insurance Corp., continue to issue warnings for Americans to be vigilant as con artists attempt to steal from consumers spooked by an onslaught of bad news related to COVID-19. However, the harsh reality is that despite all the warnings, people still fall prey to financial scams. Case in point: The old "Nigerian prince" fund transfer scams still rake in more than $700,000 a year.
The Securities and Exchange Commission offers some basic steps consumers should take to protect themselves from being swindled in a money scam.
Before you hand over any money or share any personal information, verify that the person is currently registered or licensed and find out if he or she has a disciplinary history. Look out for common tricks that con artists use to attract investors. Fraudsters use different means, including through promotional videos, social media, email, phone conversations and in-person meetings, to lure victims into scams.
Always remember: If it seems too good to be true, it probably is.
CNBC will be answering your money questions today.
The coronavirus pandemic has completely reshaped life in the U.S. and around the world. Americans of all ages are facing financial stress from the coronavirus. How do you stay financially sound at a time of unprecedented challenges?
Certified financial planner Doug Boneparth of CNBC's Financial Advisor Council is doing a Reddit AMA with CNBC today at 12:00 PM ET to help you navigate recent financial uncertainty. He'll be answering any coronavirus personal finance and money questions you may have. Ask him anything!
For more key stuff like this, please follow me on Twitter @jimpavia and check out CNBC's Financial Advisor Hub and CNBC + Acorns Invest in You: Ready. Set. Grow.
| | Op-Ed: Financial advisors help clients navigate through uncertainty | | The best financial advisors will choose to stay connected with their clients throughout the coronavirus crisis and be creative in evolving their services on a human level. Keep adding to your market volatility playbook — this isn't the first time we've encountered turbulence in the markets, and it won't be the last. | | | | | | Why stocks and bonds fell together last week | | "It is much more common to see correlation between high yield corporate debt and stocks than it is to see correlation between Treasurys and stocks. But it has happened. It's very rare ..." | | | |
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