SCC News

RICHMOND – The Internet, social media and messaging apps offer many useful features for daily life, but also new opportunities for investment scams. While social media platforms, online dating websites and dating apps may be good ways to meet people, Virginia residents should be wary if someone uses an online friendship or romance to solicit an investment or offer investment opportunities.

Individuals trying to promote investment scams may pose as potential romantic partners or possible new friends in an attempt to lure unsuspecting individuals into fraudulent investment schemes. These scammers may set online traps as well as use technology and social media platforms to profile targets. They may spend time getting to know their target and use flattery to try to win them over before introducing an investment opportunity.

The State Corporation Commission’s (SCC) Division of Securities and Retail Franchising (Division) encourages Virginians to be skeptical of investments offered by a new and unfamiliar online contact or friend request, and to do their homework before considering any investment.

“Don’t let your heart rule your head when making financial decisions,” said Director Ron Thomas. “The virtual world can make it easy for scammers to pretend to be someone who they are not. Whether online, by phone or in person, be leery of unsolicited investment offers and never share financial information with a stranger. Understand the risks and benefits of any investment and do not invest more than you can afford to lose.”

Thomas offers the following tips:

1. Independently verify who is offering an investment and the details of an offer, as well as verify any app or website to which a stranger may direct you. Be wary of individuals who are unwilling to meet face-to-face or via clear video feed, or who attempt to pressure you into making an investment.
   
   Keep in mind that individuals offering investments are obligated to disclose all material facts regarding an investment, and they must disclose the risks associated with each product. Bad actors will often minimize or conceal risks of an investment and, instead, tout their alleged profits and payouts.
    
2. Make sure any investment and the person offering it are properly registered. In Virginia, contact the Division at 804-371-9051 or toll-free at 1-800-552-7945, or email SRF_General@scc.virginia.gov. Investors can also search the federal Securities and Exchange Commission’s Investment Adviser Public Disclosure website or visit the BrokerCheck platform offered by the Financial Industry Regulatory Authority (FINRA).
    
3. If an offer sounds too good to be true, it probably is. Don’t be swayed by flattery or the promise of friendship or romance, or be enticed by claims of safe, lucrative or guaranteed returns with little or no risk. These representations are often a red flag for fraud, since all investments carry some degree of risk.

For more information, visit the Division’s website at scc.virginia.gov/pages/Consumer-Investments or the NASAA website at nasaa.org.

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Contact: Katha Treanor, 804-371-9141

RICHMOND – Mandatory 10-digit dialing (3-digit area code + the 7-digit telephone number) begins May 14, 2022 for Virginians living in the 540 area code region. Local calls made with just seven digits will not be connected. This is the second step in a June 2020 relief plan approved by the State Corporation Commission (SCC) to phase in the new 826 area code. Permissive 10-digit dialing for the 540 area code region began November 13, 2021.

The 540 area code encompasses the northwestern and southwestern portions of Virginia; some of the larger cities include Blacksburg, Christiansburg, Culpeper, Fredericksburg, Front Royal, Harrisonburg, Radford, Roanoke, Salem, Staunton, Waynesboro and Winchester.

In the coming months, the inventory of available phone numbers with "540" as the area code is expected to run out. The SCC approved an overlay, which is the addition of another area code (826) to the same geographic region served by an existing area code (540). Beginning June 14, 2022, new telephone lines or services may be assigned numbers using the new 826 area code.

The good news: residents and businesses that already have phone numbers will get to keep them. No one’s 540 phone number will change.

Alarm, security, and elevator services and equipment currently located in the 540 area code and programmed to dial only seven digits must be updated or reprogrammed to dial the area code + telephone number for all calls in the 540 area code.

For more information on this topic, visit: scc.virginia.gov/pages/540-Area-Code-Exhaust-Relief.

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Contact: Ford Carson, 804-371-9141

RICHMOND – The State Corporation Commission (SCC) is pleased to announce its release of a Request for Proposals (RFP) for the State-Based Exchange Technology Platform (SBE Platform) and Consumer Assistance Center (CAC) on eVA, Virginia’s central procurement system. This RFP is the next step for the Health Benefit Exchange (HBE) division of the SCC to successfully transition from HealthCare.gov to a fully autonomous, Virginia-based health insurance exchange.

Vendor proposals, which should incorporate the SBE Platform and CAC, are due May 2. The SCC expects to award the contract in mid- to late-summer of 2022.

HBE’s primary purpose is to promote a transparent and competitive marketplace, promote consumer choice and education, assist individuals with access to programs, premium assistance tax credits, cost sharing reductions, support the continuity of coverage, and reduce the number of uninsured.

The Health Benefit Exchange will:

• provide eligibility, enrollment, and tailored customer service closer to Virginia citizens;
• more closely coordinate with other state agencies and programs to increase the likelihood that individuals maintain health care coverage; and
• directly handle consumer complaints and address consumer issues to design and optimize the consumer shopping experience.

Open Enrollment for plan year 2023 will begin on November 1, 2022. Virginia marketplace consumers will continue to shop for health plans on HealthCare.gov until November 1, 2023. The SCC anticipates that the full transition to its own state-based platform will be completed by the fall of 2023, in time for Open Enrollment for health plans that begin coverage January 1, 2024.

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Contact: Ford Carson, 804-371-9141

RICHMOND – Mandatory 10-digit dialing (3-digit area code + the 7-digit telephone number) begins April 9, 2022 for Virginians living in the 757 area code region. Local calls made with just seven digits will not be connected. This is the second step in a February 2020 relief plan approved by the State Corporation Commission (SCC) to phase in the new 948 area code. Permissive 10-digit dialing for the 757 area code region began September 11, 2021.

The 757 area code encompasses the vast majority of the Hampton Roads metropolitan area including Williamsburg, Franklin and Suffolk in the west, and Virginia Beach, Norfolk and the Eastern Shore to the east.

In the coming months, the inventory of available phone numbers with "757" as the area code is expected to run out. The SCC approved an overlay, which is the addition of another area code (948) to the same geographic region served by an existing area code (757). Beginning May 9, 2022, new telephone lines or services may be assigned numbers using the new 948 area code.

The good news: residents and businesses that already have phone numbers will get to keep them. No one’s 757 phone number will change.

Alarm, security, and elevator services and equipment currently located in the 757 area code and programmed to dial only seven digits must be updated or reprogrammed to dial the area code + telephone number for all calls in the 757 area code.

For more information on this topic, see: scc.virginia.gov/pages/757-Area-Code-Exhaust-Relief-FAQ.

RICHMOND — April is National Safe Digging Month, and the State Corporation Commission’s Division of Utility and Railroad Safety (URS) reminds all Virginians to Know What’s Below and Dig with C.A.R.E. to help keep Virginia’s underground utility infrastructure damage-free and our communities, business districts and environment safe.

The steps to safe digging in Virginia are:

• Contact Virginia 811 before you dig.
• Allow the required time for marking the utilities.
• Respect and protect the marks.
• Excavate carefully.
   

Whether you’re a professional contractor, do-it-yourselfer or homeowner, you have an important role in preventing damage to underground utilities. No matter how big or small your project is, contacting the Virginia 811 Notification Center to request the marking of your underground utility lines before you dig will help avoid physical injury, property damage, costly repairs and service interruptions.

Contact Virginia 811 by going online at www.va811.com. You may also call 811 or 1-800-552-7001 Monday through Friday, 7 a.m. to 5 p.m., excluding legal state and national holidays. Emergency notification service is available 24/7, 365 days a year.

For more information about safe digging and demolition, contact URS at 804-371-9980 or visit the SCC Damage Prevention page at scc.virginia.gov/pages/Damage-Prevention.

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Contact: Katha Treanor, 804-371-9141

RICHMOND – The arrival of spring can usher in tornadoes, strong winds, hailstorms, flash floods, lightning and other extreme weather. Advance preparation is the key to protecting yourself, your loved ones and your property – both physically and financially.

The State Corporation Commission’s (SCC) Bureau of Insurance (Bureau) encourages Virginians to plan now for potentially extreme spring weather. “Assess your risk and make sure you have the insurance coverage you need if severe weather causes damage to your home, business, vehicles or other property,” said Virginia Insurance Commissioner Scott A. White. “If you have questions, contact the Bureau of Insurance or your insurance agent or company.”

When planning ahead to protect your interests, the Bureau encourages Virginians to consider the following:

• Review your insurance policy and contact your insurance company if you have any questions about your coverage.
• Create a detailed inventory of your belongings. Include photos and receipts of your property if you have them. The National Association of Insurance Commissioners’ (NAIC) free home inventory app can facilitate this process. You can use the Inventory Checklist as a guide. Store your home inventory checklist and insurance policy information in a secure, waterproof location.
• Most homeowners and renters insurance policies do not cover losses due to flooding. Talk with your insurance agent about flood insurance or visit the National Flood Insurance Program website. To learn more, contact your insurance agent or the NFIP at 1-888-379-9531 or visit floodsmart.gov.

Automobile other-than-collision insurance coverage, sometimes called "comprehensive" insurance coverage, helps pay to repair or replace vehicles if they are stolen or damaged by such things as fire, water, wind, hail, vandalism, glass breakage, falling objects or contact with an animal.

In the event that a loss occurs at a later date, the Bureau recommends that Virginians keep several steps in mind:

• Contact your insurance company or agent as soon as possible.
• Take photos of your damaged property once it is safe to do so.
• Save the receipts of any emergency repairs that are needed to prevent your property from becoming further damaged.
• If you feel you are treated unfairly, contact the Bureau of Insurance Property & Casualty Consumer Services team at 804-371-9185 or file a complaint online.

The Bureau offers free consumer guides for homeowners and commercial property owners with information about what to do when a disaster strikes. These and many other consumer insurance guides are available on the Bureau’s website at scc.virginia.gov/pages/Insurance.

The Bureau’s specially trained staff can assist consumers with their insurance-related questions and concerns. To learn more, contact the Consumer Services Section of the Bureau’s Property and Casualty Division toll-free at 1-877-310-6560 or in Richmond at 804-371-9185. For additional emergency preparedness information relating to various types of disasters and hazards, visit the Virginia Department of Emergency Management website at vaemergency.gov.

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Contact: Katha Treanor, 804-371-9141

RICHMOND – The State Corporation Commission (SCC) reminds Virginians that National Consumer Protection Week (NCPW) begins Sunday. Each year, NCPW helps people understand their consumer right and make smart choices with their finances. Held March 6-12 this year, NCPW combines the efforts of the Federal Trade Commission and other federal, state, and local agencies and organizations – including the SCC – to promote resources for well-informed consumer decisions.

The SCC is a one-stop shop for many such resources. Consumers may find information and assistance in areas including insurance companies and agents, state-chartered financial institutions, investment firms and their representatives, retail franchises and investor-owned utilities providing electric, natural gas, water, and sewer, along with landline telecommunications services.

The SCC also offers many consumer guides and financial information resources on topics such as mortgage loans and deposit account information, purchasing insurance, and more. Specially trained staff can assist Virginians with information to help them make informed choices and, in some circumstances, to address complaints against regulated entities for things like an improperly denied insurance claim, errant charges on a loan transaction or securities offering, or an inaccurate utility bill.

The SCC encourages consumers to shop around and compare prices and terms; thoroughly evaluate any offer; keep written records of all transactions; find products and services that suit their particular needs; review statements and bills regularly; learn to spot scams, and verify that an individual or company is properly licensed or registered.

If a problem arises, the SCC urges consumers to try to resolve it with the regulated individual or company first. If they need further help, consumers can contact the appropriate SCC division. Information about the complaint process along with related forms are available from the Consumers section of the SCC website at scc.virginia.gov. To contact the SCC by phone, call toll-free at 1-800-552-7945 or in Richmond, call:

• Bureau of Insurance – 804-371-9741
• Bureau of Financial Institutions – 804-371-9657
• Division of Securities and Retail Franchising – 804-371-9051
• Division of Public Utility Regulation – 804-371-9611
• Office of the Clerk – 804-371-9733
• Division of Information Resources – 804-371-9141

In the event the SCC does not have regulatory authority over a particular company, individual, product or transaction, its staff will assist consumers whenever possible by referring them to the appropriate local, state or federal authority for assistance. These authorities may include the Office of the Attorney General, a local consumer protection office, law enforcement agencies, Better Business Bureau or the Federal Trade Commission (which consumers can also contact directly through its toll-free helpline at 1-877-FTC-HELP (1-877-382-4357)).

To learn more about National Consumer Protection Week, visit www.consumer.ftc.gov.

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Contact: Ford Carson, 804-371-9141

RICHMOND – Investment scams involving cryptocurrencies, promissory notes, online investment offers and schemes involving Self-Directed Individual Retirement Accounts (IRAs) may be among the top investor threats Americans face during 2022, according to a recent survey of securities regulators.

The State Corporation Commission’s (SCC) Division of Securities and Retail Franchising (Division) encourages Virginians to do their homework any time they plan to invest. Understanding the benefits and risks of any investment is important.

“Let caution be your guide, especially when investing in cryptocurrency and digital assets, which can be volatile and headline the list of investor threats for the new year,” said Director Ron Thomas. “Don’t be lured by thoughts of easy money or stories of ‘crypto millionaires,’ and never invest more than you can afford to lose.”

The list Thomas references is a list of the top 2022 investor threats, as determined by a survey of state and provincial securities regulators conducted by the North American Securities Administrators Association (NASAA), of which the SCC is a member. The annual survey is designed to identify the products, practices or schemes that may present challenges or risks for investors.

Thomas offers the following tips to identify and avoid scams:

1. Independently verify who is offering an investment and details of an offer. Scammers often spoof websites and rely on fake social media accounts to obscure their identities. To spot fake accounts, look closely at their content, dates of inception and quality of engagement. Pay careful attention to domain names and learn more about how to protect your online accounts.
2. Beware of fake client reviews. Scammers often reference or publish positive, yet bogus, testimonials purportedly drafted by satisfied customers. These testimonials create the appearance the promoter is legitimate and has demonstrated solid performance in the past, but they are sometimes drafted by the scammer, not a satisfied customer. Learn how to protect yourself with NASAA’s Informed Investor Advisory on social media, online trading and investing.
3. If it sounds too good to be true, it probably is. Don’t be enticed by promises of safe, lucrative, guaranteed returns with little or no risk and over relatively short terms – sometimes measured in hours or days instead of months or years. These representations are often a red flag for fraud, since all investments carry some degree of risk.

Individuals offering investments are obligated to truthfully disclose all material facts, and they must disclose the risks associated with each product. On the other hand, bad actors will often minimize or conceal risks and, instead, tout profits and payouts.

Thomas encourages Virginians to understand any investment before turning over their hard-earned money. To learn more about whether investments and the people offering them are properly registered, Virginians can contact the Division at 804-371-9051 or toll-free at 1-800-552-7945 or email SRF_General@scc.virginia.gov. They can also search the federal Securities and Exchange Commission’s Investment Adviser Public Disclosure website or visit the BrokerCheck platform offered by the Financial Industry Regulatory Authority or FINRA.

For more information, visit the Division’s website at scc.virginia.gov/pages/Consumer-Investments or the NASAA website at nasaa.org.

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Contact: Katha Treanor, 804-371-9141

RICHMOND – Winter weather can wreak havoc with your home, business, vehicles and other property, causing billions of dollars in insured and uninsured losses nationwide each year. Think burst pipes, slippery sidewalks, roof cave-ins and vehicle damage due to fallen tree limbs and slick roads.

With several recent winter weather events in Virginia already and the possibility for others during this winter season, the time to prepare is now. The State Corporation Commission’s (SCC) Bureau of Insurance (Bureau) encourages Virginians to review their insurance coverage and prepare their homes and vehicles before harsh winter conditions return. It is important to know the extent of your insurance coverage, as well as any deductibles you may have to pay in the event of a claim.

Accumulation of too much snow or ice can result in tree limbs breaking and falling on homes, vehicles and power lines. Falling limbs also can result in collapsed roofs and other damage to homes, structures and vehicles. Melting snow and ice can cause flooding of property and interior damage to structures even after a winter storm ends. Sub-freezing temperatures can lead to broken pipes both inside and outside your home.

“Plan ahead for seasonal and other hazards,” said Virginia Insurance Commissioner Scott A. White. “Homeowners, renters and commercial property policies can protect you against many types of winter weather threats, but there are exceptions. Contact your insurance agent or company or the SCC’s Bureau of Insurance to learn more.”

To help reduce the risk of damage to your home and property this winter, the Bureau suggests the following:

• Remove dead, dying, diseased or broken tree limbs near your home and property.
• Remove debris from your gutters to help prevent ice dams and allow melting water to drain freely away from your home.
• Inspect your attic insulation and ventilation to ensure warm air stays in the living areas of your home and out of the attic. Keeping attic air cold can help minimize the freeze/thaw cycle that causes ice dams, which may cause interior water damage to your home. Proper insulation of your home has the added advantage of helping save energy and may reduce your heating costs.
• Protect your pipes from freezing. Detach garden hoses from your home before the temperature drops below freezing and properly winterize pipes and irrigation systems around your home. To protect interior pipes, leave your faucet running slightly to allow water to trickle through the pipes, reducing the chance that standing water will freeze. Opening the cabinet doors under your sink allows warm air to circulate around your pipes and to help keep them from freezing.
• Make sure fireplaces, wood stoves and electric heaters work properly. Additionally, keep combustible items away from heat sources.

Standard homeowners, renters and commercial property insurance policies provide coverage for damage to property caused by wind, snow, severe cold and freezing rain. Property damage caused by flooding typically is not covered, but separate flood insurance is available through the National Flood Insurance Program at floodsmart.gov and may be available through your insurance carrier.

If your home or property suffers damage as a result of severe winter weather, contact your insurance agent or company as soon as possible. Make any necessary emergency repairs and take reasonable steps to prevent further damage. Record all damage to your property and include photographs, notes and repair-related receipts.

Homeowners insurance also may cover certain incidents where someone slips and falls on slick sidewalks or other surfaces on your property. You can check for this coverage under the liability and medical payments portions of your homeowners insurance policy.

If you are involved in an auto accident between two or more vehicles attributed to snowy and slippery road conditions, or if your vehicle crashes into an object affixed along a roadway (such as a streetlight) due to those conditions, collision coverage is available under standard auto insurance policies. Also check to see whether your auto insurance covers damage to your vehicle caused by ice, snow and falling tree limbs. These types of damages usually are covered by other-than-collision (or comprehensive) coverage on your vehicle, which protects against damage to a vehicle from such things as fire, water, hail, vandalism, glass breakage, wind and falling objects.

The Bureau offers consumer guides regarding homeowners, renters, commercial and auto insurance and disaster-related property insurance claims. For copies of these and other publications offered by the Bureau or for answers to your insurance questions, contact the Bureau’s Property and Casualty Consumer Services Section at 804-371-9185 in Richmond or toll-free at 1-877-310-6560. Copies of the consumer insurance guides are also available on the Bureau’s website at scc.virginia.gov/pages/Insurance.
 

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Contact: Katha Treanor, 804-371-9141

RICHMOND – Decentralized Finance (DeFi), a relatively new blockchain-based set of financial services, may come with risks that are not readily apparent to investors. As such, the State Corporation Commission (SCC) urges Virginians to approach this technology as they would any other potential investment – with caution as well as an understanding of the potential benefits and risks.

DeFi firms rely on algorithms and use digital assets to provide financial services such as depository services, lending, investing and management services. Some of these services are highly complex, operate outside current regulatory frameworks and may offer few, if any, consumer protections. DeFi relies heavily on peer-to-peer transactions rather than an intermediary such as a bank that holds custody of funds.

“Never invest more than you can afford to lose,” said Ron Thomas, director of the SCC’s Division of Securities and Retail Franchising (Division). “Because DeFi is an emerging technology – and offers lending and investing options that are not dependent on traditional financial markets – the risks differ from those in traditional markets.”

“The growing popularity of cryptocurrencies is one of the main drivers behind the development of alternative banking and business opportunities that may rely on DeFi models,” Thomas said.

To help Virginians better understand DeFi, the North American Securities Administrators Association, of which the SCC is a member, issued an investor advisory to explain DeFi, the technology behind it, how DeFi lending works, potential risks for investors, and how consumers can avoid becoming a victim to scams.

Thomas encourages Virginians to understand any investment and the person offering it before they invest.

For additional resources regarding securities and investing, or to find out if an investment or the person offering it are properly licensed or registered in Virginia, contact the Division of Securities and Retail Franchising in Richmond at 804-371-9051 or toll-free at 1-800-552-7945, or visit its website at scc.virginia.gov/pages/Consumer-Investments.

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Contact: Ford Carson, 804-371-9141