North American officials have taking action against 220 pandemic-related fraudulent investment schemes
![Securities regulators act to stop those cashing in on COVID](https://cdn-res.keymedia.com/cdn-cgi/image/f=auto/https://cdn-res.keymedia.com/cms/images/ca/155/0348_637335155532832419.jpg)
![Steve Randall](https://cdn-res.keymedia.com/cdn-cgi/image/f=auto/https://cdn-res.keymedia.com/cms/images/ca/100/0311_637073080252507882.png)
While most of us are focused on protecting our families and communities during the pandemic, fraudsters see it as an opportunity to scam investors.
The North American Securities Administrators Association (NASAA) set up a specific taskforce in April to target those who aim to profit from the pandemic and says that 220 schemes have faced enforcement action.
The collaborative group of securities regulation organizations from Canada, the US, and Mexico, detected 244 schemes to defraud investors and consumers, including 154 investment-related schemes and 90 non-investment schemes.
Christopher W. Gerold, NASAA president said that con artists follow the headlines and have no issue with targeting those investors that are the most vulnerable.
“Some of these investors are just seeking greater returns while others may have lost a job and are worried about market volatility and making ends meet,” he said. “We are putting con artists on notice that state and provincial securities regulators are taking swift and effective action to protect investors from their schemes.”
The COVID-19 Enforcement Task Force comprises 111 investigators from 44 jurisdictions and their work has resulted in action such as administrative actions, cease-and-desist orders, referrals to other regulators and to social media and hosting companies.
Fear and anxiety
Joe Rotunda, vice chair of NASAA’s Enforcement Section, said many of the schemes disrupted by the task force incorporate fear and anxiety into their pitches.
“They often exploit trendy assets such as cryptocurrencies or mysterious programs involving forex trading and even investments powered by futuristic artificial intelligence – the types of products that may sound appealing, but also the types of products unfamiliar to inexperienced retail investors,” he said.
NASAA's COVID-19 Enforcement Task Force, consisting of state and provincial securities regulators, today announced it has initiated actions to disrupt 220 schemes seeking to fraudulently profit from the pandemic. Details: https://t.co/u4PLaCpQOw #COVID19
— NASAA (@NASAA) August 19, 2020