WASHINGTON–As many as 200,000 coronavirus-related domains have been created in recent months, and concerns are many are part of attempts to create fraud.
The sites were identified by The North American Securities Administrators Association (NASAA), which has formed a COVID-19 Enforcement Task Force, consisting of state, federal and international securities regulators, to identify and stop potential threats to investors stemming from the COVID-19 pandemic.
“The objective of the task force is to proactively identify COVID-19-related threats to investors, including but not limited to fraudulent offerings, investment frauds, and unregistered regulated activities, within the jurisdiction of NASAA member states and provinces, and to disrupt, discourage and deter those activities,” said Christopher W. Gerold, NASAA President and chief of the New Jersey Bureau of Securities.
Modeled on Earlier Effort
The new effort is modeled on NASAA’s Operation Cryptosweep, and is being led by the organization’s Enforcement Section and its Enforcement Technology Project Group. The Task Force is using online investigative techniques to identify websites and social media posts that may be offering or promoting fraudulent offerings, investment frauds, and unregistered regulated activities.
“Fraudsters are ramping up as a result of this crisis,” said Joseph P. Borg, NASAA enforcement section chair and director of the Alabama Securities Commission. “Some jurisdictions have already taken enforcement actions against illegal investment schemes and we fully expect the task force to uncover many more. Our goal is to get and stay ahead of the curve.”