The North American Securities Administrators Association (NASAA) warned retail investors in March to be on the lookout for fraudulent investment schemes, and this week the group says its COVID-19 Enforcement Task Force has uncovered 244 schemes aimed at defrauding investors and consumers, including 154 investment-related schemes.
The task force, which consists of state and provincial securities regulators, has initiated 220 actions, including administrative actions, cease-and-desist orders, referrals to other regulators and to social media and hosting companies, in an effort to stop the schemes.
“[Scammers] 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,” said Joe Rotunda, director of enforcement for the Texas State Securities Board and vice chair of NASAA’s Enforcement Section, in a statement.
The task force was formed in April and includes 111 investigators across 44 jurisdictions in the U.S., Canada and Mexico.