Covid-19 is new, but crisis-based scams are not — Scam Guards
The regulators said that investors should be wary of schemes, being touted online and via social media, that claim to be raising capital for companies that are combatting Covid-19.
These schemes may include offerings that involve limited partnerships, stock, private placements, initial coin offerings (ICOs) or other crypto-related investments, or crowdfunding investments.
Many of the pandemic-related schemes uncovered by state and provincial regulators aim to capitalize on investor fear and anxiety, “by promoting safe returns independent of the stock market and the economy,” the regulators noted.
They also aim to jump on trends, such as cryptoassets or complex investment programs involving foreign currencies, that are “very unfamiliar to most inexperienced retail investors.”
These schemes often promise “passive income” or monthly “cash flow” that may appeal to investors suffering due to the economic…