Des Moines – The Iowa Insurance Division is alerting investors to be on guard against an anticipated surge of fraudulent investment schemes amid the ongoing COVID-19 pandemic.

“In these extraordinary times the health and welfare of our people is our first concern, and that includes financial health,” said Iowa Insurance Commissioner Doug Ommen. “Scammers will begin perpetrating schemes that require little or no advance planning and minimal sophistication. Most will simply be old scams dressed up in new clothing.   Especially in these times of market and economic challenges, investors must stay calm, keep their eyes on the longer term ‘big picture’ and remain vigilant to protect themselves.”

In particular, the Iowa Insurance Division warned investors to be on the lookout for investments specifically tied to the threat of COVID-19. Bad actors can be expected to develop schemes that falsely purport to raise capital for companies manufacturing surgical masks and gowns, producing ventilators and other medical equipment, distributing small-molecule drugs and other preventative pharmaceuticals, or manufacturing vaccines and miracle cures. The schemes often appear legitimate because they draw upon current news, medical reports and social and political developments.

Scammers also will seek to take advantage of concerns with the volatility in the securities markets to promote “safe” investments with “guaranteed returns” including investments tied to gold, silver and other commodities; oil and gas; and real estate. Investors also can expect to see “get rich quick” schemes that tout quickly earned guaranteed returns that can be used to pay for rent, utilities or other expenses. These schemes also target retirees and senior citizens, falsely claiming they can quickly and safely recoup any losses to their retirement portfolios.

“Investors should stay clear of anything sounding too good to be true, such as guarantees of high returns with no risk,” Ommen said. “Iowans can double-check with our office to make sure the investment and the person offering the investment are properly licensed or registered.”

Iowans can contact the Iowa Insurance Division at iid.iowa.gov or 877-955-1212.   For more information: https://content.govdelivery.com/accounts/IACIO/bulletins/283f2ea