Processing Your Payment

Please do not leave this page until complete. This can take a few moments.

July 27, 2022

Report: Investment fraud in state jumps 700%

Pixabay
By Michelle Tuccitto Sullo, New Haven Biz

A recent study found that Connecticut experienced the seventh-highest percentage increase in investment fraud in the country last year.

The study, conducted by BrokerChooser, which features an online broker comparison tool and reviews, analyzed data on investment-related scams and fraud from the Federal Bureau of Investigation. 

According to the BrokerChooser 2022 Investment Fraud Report, Connecticut had 136 investment fraud victims in 2021, compared to 17 in 2019, for a 700% increase. In a state-by-state ranking for the largest percentage increase in investment fraud, Connecticut came in at No. 7.

However, Connecticut’s total lagged considerably behind states like California, which had the most in the country in 2021, with 3,153 investment fraud victims. Texas came in second with 1,316 and Florida placed third with 1,308, the study showed.

COURTESY OF BROKERCHOOSER

According to the report, fraud victims in 2021 lost the most money in Oklahoma, with average losses per incident reaching $214,639.

BrokerChooser reports that there has been a “huge surge” in the amount of investment fraud in recent years, and noted that it is a global trend, rather than a problem in any particular country.

Frank Rudewicz, principal with accounting firm CliftonLarsonAllen LLP, has said fraud in general, including investment fraud, spikes whenever the economy worsens.

Experts say people can reduce their chances of being victimized by doing thorough background checks and research prior to investing. They also recommend watching out for red flags, such as high pressure tactics and unsolicited investment offers.

Check out the BrokerChooser report’s full findings here.

Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com.

Sign up for Enews

Most Recent

Most Recent

0 Comments

Order a PDF