The Tennessee Department of Commerce & Insurance’s (TDCI) Division of Securities is urging investors to recognize warning signs of mobile investment app scams before investing or sharing personal information.
Mobile apps have become a popular, cost-effective alternative to consulting with investment professionals. However, using these apps can expose investors to risks such as unsuitable services or misinformation.
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“While most apps provide legitimate investment information, some individuals create platforms that promote unregistered securities as safe opportunities,” stated TDCI Commissioner Carter Lawrence. “Investors with questions about an app should contact our Securities team.”
Investment apps must be registered with federal, provincial, or state securities regulators, and investors should verify the registration status of the app’s underlying entity.
“Using an unregistered app can jeopardize an investor’s financial security and personal data,” added TDCI Assistant Commissioner for Securities Elizabeth Bowling. “We recommend thorough research on both the security being offered and the entity behind it.”
Investors with concerns can contact TDCI’s Securities Division at tn.gov/commerce/securities or 800-863-9117.
### Mobile Investment App Red Flags ###
– Guarantees high percentage returns.
– Lacks ratings/reviews or has negative feedback.
– Advertises as risk-free, low risk, or guaranteed.
– Promotes passive income or offers referral bonuses.
– Online discussions suggest the app causes investor losses or is a scam.
### How to Protect Yourself ###
– Research the product and the person offering it to confirm registration.
– Do not trust an app solely because it is listed on a mainstream app store or promoted on social media.
– Consult with a registered investment professional instead of relying only on apps.
– Conduct thorough research before investing.
– Verify app safety with your state or provincial securities regulator.
For more tips on mobile investment apps, visit the latest blog post here.
Source: Read Original Release