The Wisconsin Department of Financial Institutions is warning investors about advertised opportunities to invest in Iraq's currency, the dinar.
The DFI says several web sites say Iraq's currency is poised to increase in value, even dramatically, but it says investors aren't told that the dinar is only good in Iraq.
There is no currency exchange for the dinar and the U.S. dollar.
"That allows dealers to charge whatever they want to sell and buy back the Dinars, since no exchange exists for the currency," the DFI said in a statement Wednesday, reported by WBAY.
The DFI says some dinar dealers tout being registered with the U.S. Treasury Department as a Money Services Business, or MSB, but the designation only means the company's information is on file with the Treasury.
"We encourage investors to exercise extreme caution when considering their investment opportunities. They should do their homework," DFI Division of Securities administrator Patricia Struck said.
Suspicions of security or investment fraud can be reported to the Division of Securities by calling toll-free, 1-800-472-4325.