An Oregon Agency Issues A Warning To Investors Not To Chase Cryptocurrency Or Fall For Internet Fraud Or “Finfluencers”

As “influencers” become more prominent across social media channels, the Oregon Division of Financial Regulation is issuing a warning to investors to steer clear of online scams that promise rates of return that are impossible to achieve as a means of making up for recent losses related to the market and crypto-related activities.

The department has recently become aware of various internet scams that target investors and pose as providing “education” or “advice” to them when, in reality, they are just steering schemes. Through TikTok and Discord, these schemes spread multiple false representations regarding the investment and the rate of return.

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As a result, it is impossible to trace back these false representations and the individuals who are responsible for spreading them. The persons who are typically targeted by the investment proposals are those who have lately suffered financial losses as a result of their investments in cryptocurrencies or stocks.

“Investors are being enticed by con artists with promises to make up for previous losses,” claimed TK Keen, administrator of the DFR. “Unfortunately, this has linked with the rise of influencers who may not be regulated by the state as financial professionals and may have undisclosed conflicts of interest,” the author writes.

An Oregon Agency Issues A Warning To Investors
An Oregon Agency Issues A Warning To Investors

The North American Securities Administrators Association (NASAA) defines an “influencer” as a person who, by virtue of their popular or cultural status, possesses the capability to influence the financial decision-making process of others through the promotion or recommendation of products or services on social media.

In other words, an “influencer” is a person who has the ability to influence the behaviour of others with regard to their financial decisions. They may try to persuade prospective investors by publishing posts or videos on their social media accounts. These posts or videos are frequently designed to be entertaining in the hopes that they would be shared with other prospective investors.

The value of cryptocurrencies continues to fall from their all-time highs, and a number of cryptocurrencies have entirely failed, as has been widely documented. Because of the high degree of volatility associated with these different kinds of investments, investors may want to avoid choosing them.

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Keen stated that the principles of investment have not evolved over time. “Do your research, ensure that you fully comprehend the investment and all of the associated dangers, and do not let yourself be misled by people who guarantee profits that are impossible to achieve, regardless of how popular they are on social media.”

About Oregon Division of Financial Regulation (DFR): The Division of Financial Regulation is a division of the Department of Consumer and Business Services, which is the largest business regulatory and consumer protection department in Oregon. VisitΒ www.dcbs.oregon.govΒ andΒ dfr.oregon.gov. ​​

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