Criminals Exploit Coronavirus with New Scams, Warns CFTC

The US Commodity Futures Trading Commission today alerted investors that scams related to COVID-19 are beginning to circulate across different sectors, with criminals capitalizing on the situation to run a range of financial scams.

“During this period of market Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term, we want to ensure the public has important information to help detect and stop fraud. We will aggressively pursue misconduct in our markets tied to the impact of the Coronavirus Coronavirus The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, Read this Term pandemic. There is never an appropriate time to prey on innocent people’s fears,” the CFTC said.

Among the most prevalent scams attempting to take advantage of the coronavirus outbreak are fraudsters urging people to invest in new stocks related to the disease.

That’s according to U.S. regulators, including the SEC, which all released investor alerts in the past week warning Americans about an uptick in internet promotions claiming that stocks of certain companies will dramatically increase.

Another common scam is “pump and dump” schemes related to some penny stocks where fraudsters try to boost its price by sharing positive, but fake, information. In this case, they claim that a company managed to detect coronavirus cases or to develop a new cure to prevent the infection.

Phishing and other malicious email campaigns have also been running rampant on internet platforms since the outbreak began. Emails and websites promising vital information about keeping safe from the pandemic attempt to steal passwords and personal information, including credit card numbers.

Global regulators have also been proactive by cracking down on financial fraud and other abuses, like price gouging and fake coronavirus cures, though those related to COVID-19 were unprecedented in its complexity and scope.

On its part, the City watchdog has identified different scams infiltrating Britons’ email inboxes, including insurance policies, pensions transfers, and high-return investment opportunities, as well as cryptocurrencies.

Elsewhere, the Malta Financial Services Authority (MFSA) also warned locals that the COVID-19 pandemic had become a bonanza for scammers of all stripes. The MFSA added that the new wave of fraudulent activities is exploiting the global concern about the deadly disease to make money and steal information.