GRAVETTE -- Eric Munson, commissioner of the Arkansas Securities Department, was guest speaker for the Gravette Lions Club at its regular meeting Tuesday, Feb. 2. Commissioner Munson said the Securities Department is a division of the Department of Commerce and he works closely with Senator Jim Hendren, of Sulphur Springs, chairman of the state insurance and commerce commission.
Munson has over 30 years of experience in government policy regulation and investment banking. He has been a financial advisor and underwriter at Stephens Inc. and a financial consultant at Morgan Stanley and has served as director of legislation and regulation for the Arkansas Bankers Association. He explained that the Securities Department regulates mortgages and regulates anyone who sells stocks, bonds, mutual funds and certificates of deposit. Its goal is to protect investors, particularly those who are not financially literate.
Munson spoke to Lions Club members about various types of investment fraud, which is estimated to be a $10 to $40 billion industry. He mentioned identity theft, pyramid schemes, ponzi schemes, investment scams, telephone scams, IRS imposters, charity scams, cryptocurrency, coronavirus scams and scams involving letters from Nigeria and family members in distress.
Munson warned that identity theft is particularly dangerous because when a scammer has hijacked your identity, he can obtain false lines of credit. He encouraged his listeners to change passwords often on their accounts to help prevent fraud. Be aware of schemes and don't listen to promotional messages.
Telephone scams can be ended by "just saying 'No'," he said. "If an offer sounds too good to be true, it probably is," Munson noted, He said that, before agreeing to any offer, the listener should wait and take time to check it out, learn the signs of scams and fraud and be skeptical. Have a refusal script ready and don't trust testimonials, he said. Some telephone fraud can be prevented by asking to be place on the "Do Not Call" registry. Munson cautioned persons to refuse to give out personal data over the phone and to educate family members and friends to do the same. Research charities before donating.
Investment fraud can be prevented by working with licensed, registered companies. Investors should be informed and make sure they understand the fine print on documents. If unsure about an investment opportunity, get a second opinion. Demand periodic statements on an investment account and review them carefully.
Consumers should be aware of recent coronavirus scams and ignore offers for covid vaccines and home test kits. Stay informed and watch out for phishing emails and text messages. Don't click on suspicious links or open messages from unknown sources.
Munson reported that an Investor Education Grant Program has been set up with $125,000 available to school districts and nonprofits to fund programs that promote financial literacy for students in grades five through twelve.
In the short business meeting following Munson's talk, treasurer Jeff Davis gave a financial report and said Lions Club International and district dues have been paid.
Club members made plans to meet at the Billy V. Hall Senior Activity Center on Tuesday, Feb. 9, and assemble valentines to include in Valentine's Day meals for senior center patrons. Club president Linda Damron will attend the Gravette school board meeting on Monday, Feb. 15, and present an award to the local winner of the annual Lions International Peace Poster Contest.
School board president Heather Finley will be guest speaker for the next meeting of the club at 12 noon on Tuesday, Feb. 16. She will talk about Bright Futures. Guests are always welcome. Anyone interested in attending may call Jeff Davis, 479-787-1068, to get the Zoom link for the meeting.