COVID-19 Online Scam on the Rise

Online scams related to the coronavirus are on the rise, warned the US Commodity Futures Trading Commission. Investors are urged to be on the lookout, however this is not the only sector that has taken a hit. Virtual crimes seem to be feeding from the COVID-19 frenzy, generating illicit capital from a number of exploitative fraudulent schemes.

The CFTC earlier warned with the following statement,

“During this period of market volatility, 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 pandemic. There is never an appropriate time to prey on innocent people’s fears”.

One of the most prevalent scam that attempts to turn a profit over the virus spread urges people to invest in new coronavirus stocks. The scammers are claiming that during the current outbreak, certain company stocks will skyrocket, prospects both absolutely false and extremely heartless. It is true that some markets have increased, but even so, there are no such things as COVID-19 stocks.

Another commoner among the scams is related to penny stocks. Schemers are boosting penny stocks prices by distributing fake news, that play on people's current fears and hopes. For example, many hoaxes seem to arise from the hope for a cure.

Outside of the investing world, there have been many other means of scamming. Phishing and or spam email operations have seen a surge recently. It is now common for websites or emails to produce fake assertions concerning “brand new” safety guidelines. These falsified news aim at stealing personal information, credit card and bank details, and passwords.