Now the Tennessee Department of Commerce & Insurance’s Securities Division is warning. They are sounding the alarm on a particularly deceptive new scam involving fraudulent “Investment Education Foundations.” This investor alert is intended to help prospective investors protect themselves against these risks with special focus on investments that may be offered through social media platforms. TDCI’s Securities Division advises consumers to check out any investment education nonprofit. So always verify that they are indeed legitimate before ever giving them access to your assets.

“She’s got to do her due diligence,” said Assistant Commissioner for Securities Elizabeth Bowling.

"Do not assume an education foundation is trustworthy just because it is promoted on social media." - Assistant Commissioner for Securities Elizabeth Bowling

Fraudulent actors are increasing every year. This trend is a dangerous development aimed at the most vulnerable of all investors—those who are artificial entrants into the wilderness of crypto and other fledgling investment landscapes. These scams take advantage of the fact that we all want to know more. They exploit a natural human desire to reduce perceived risk when making investment decisions.

The Securities Division of TDCI is your first stop in learning more about how to spot fraud or illegal investment activity. Contact them to receive answers and direction. The division urges anyone who comes across a suspiciously developed investment education foundation to flag the foundation’s concerns.

For additional information or to report suspected fraudulent activity, individuals can contact the TDCI’s Securities Division at 800-863-9117 or visit their website at https://www.tn.gov/commerce/securities-division.html.