The spread of the Ebola virus in West Africa has apparently not escaped the notice of stock fraudsters, according to U.S. regulators, who have issued an investor alert warning about new scams connected to that news event.
The Financial Industry Regulatory Authority (FINRA) Thursday published a new investor alert warning investors about promotions touting stocks in companies that claim to provide products that protect against the spread of viruses, or other harmful diseases. FINRA says that it is aware of several potential investment scams involving companies that claim to be involved in the development of products that will prevent the spread of viral diseases.
“News coverage of Ebola and Middle East Respiratory Syndrome (MERS) is likely to catch the interest of ‘pump and dump’ scammers looking to capitalize on fears of a potential pandemic,” said Gerri Walsh, FINRA’s senior vice president for investor education. “Investors should be very cautious of any company that claims it is poised for dramatic growth as a result of a purported cure or treatment for high-profile viral diseases.”
The alert includes tips for spotting and avoiding investment scams, and it asks that investors who are targeted by promotions containing exaggerated or misleading claims to contact FINRA.