In an attempt to fortify the financial acumen of its citizens, the Tennessee Department of Commerce & Insurance (TDCI) is promoting a crusade of investor education during National Financial Capability Month this April. The push for heightened awareness comes amid growing concerns over the escalating number of fraudulent investment schemes preying on inexperienced investors.
Assistant Commissioner for Securities, Elizabeth Bowling, has announced a series of investor protection tips, aimed at equipping the public with tools to defend their hard-earned money. “Building a solid foundation in financial literacy empowers investors to not only recognize and steer clear of fraudulent schemes, but to successfully invest and prepare for their retirement years. Throughout April and beyond, we invite Tennessee investors to explore our comprehensive investor education materials.” Bowling stated, in comments highlighting the importance of finical savvy.
According to the TDCI, the steps to safeguard one's investments include verifying the registration of financial advisors, independently confirming the identity of securities professionals, and exercising due diligence in scrutinizing investment solicitations for signs of deceit. The TDCI's official website also offers resources for checking licenses and registration status.
Research remains a cornerstone of the division's advice. They recommend that investors not only depend on the information provided in solicitations, but also verify claims through regulatory filings and other third-party sources. It is not uncommon for scam artists to present themselves with an air of legitimacy, often providing fraudulent information that seems exceptional or "too good to be true", which should raise immediate concern.
The TDCI further cautions against impromptu financial transactions, especially those initiated by strangers through unsolicited contact. If threats of arrest or immediate harm are used as a means to coerce payments, such as via wire transfers or gift cards, they implore residents to hang up and inform law enforcement. Tennesseans are encouraged to explore more proactive measures and learn to spot red flags through educational materials provided by the TDCI's Division of Securities and the North American Securities Administrators Association (NASAA).
