The North American Securities Administrators Association (NASAA) Wednesday issued a warning about the threat of investment scams seeking to capitalize on the outbreak of Ebola virus.
NASAA cautions investors to beware of opportunistic online investment schemes related to Ebola. NASAA reports that an analysis of Internet domain names by state and provincial securities regulators found nearly 1,200 domains with “Ebola” in their name have been registered since April, and about 1,000 of those registrations have occurred since July. Of these sites, 184 were identified as suspicious by NASAA’s Internet Fraud Investigations project group.
“Our system identified a number of sites that may be suspect,” said Jake van der Laan, director of enforcement for the New Brunswick Financial and Consumer Services Commission and chair of NASAA’s Internet Fraud Investigations project group. “Although we have not investigated any of these sites, a review of domain names indicates that there certainly appear to be those intent on raising Ebola-related funds or otherwise trying to leverage the crisis for financial gain.”
Van der Laan also said that a review of Ebola-related domain names found several with the words “fund,” “invest,” “stock,” or “futures” in their titles. Most of the domain names are “parked” and have no content, it notes. “This indicates that either someone has bought the domain hoping to resell it, or the content is not ready yet,” van der Laan said.
“Past experience tells us that periods of uncertainty or fear are prime time for con artist looking to make a quick score,” said William Beatty, NASAA president and Washington Securities Director. “Investors should approach with caution any unsolicited Ebola-related investment opportunities, especially those received through the Internet.”
“Pie in the sky promises of quick wealth generally are red flags signaling fraud ahead,” Beatty said. He urged prospective investors to contact their local securities regulator to determine if both the promoter of any investment, and the investment itself, are properly licensed and registered.