Recent flooding could bring investment fraud

Recent flooding in Central Texas has brought devastation across the state. As people across Texas mourn and begin to rebuild, the Texas State Securities Board wants to caution individuals of potential investment scams.

The SEC, the U.S. Attorney’s Office, and the Texas Attorney General have also each issued warnings about potential disaster- related investment scams following the Texas floods.

Natural disasters frequently give rise to fraudulent investment schemes as bad actors seek to prey on the vulnerable and exploit natural disasters for their own personal benefit. These scams may target individuals receiving money from insurance companies, FEMA, or other relief sources. Scammers may also approach potential victims via unsolicited emails, social media, text messages, or phone calls.