April 10, 2020 / Ted Knutson, Contributor
COVID-19 frauds are coming in different flavors, the Securities and Exchange Commission is warning today in an investor alert.
From promoters boasting of companies that have developed (unproven) COVID-19 treatments to scamsters hyping “safe” commodities to charitable investment charlatans to affinity fraudsters, crooks are employing a variety of pitches to try to pick the pockets of investors, the SEC cautions.
“We have become aware of a number of stock promotions, including online and through unsolicited phone calls, claiming that products or services of publicly-traded companies can prevent, detect, or cure COVID-19, and that the stock of these companies will dramatically increase in value as a result,” the Commission points out in the alert.
The alert adds to be wary of rumors on social media of companies converting operations to COVID-19-related support, or legislative stimulus packages and related industries that supposedly benefit from the current crises.
