Investor Alert – Investment scams on the rise amid COVID-19 pandemic
The U.S. Securities and Exchange Commission (SEC) reports a significant increase in complaints since the beginning of the COVID-19 crisis. Those frauds include Ponzi schemes, fake certificates of deposit, bogus stock promotions, and community-based financial scams. Scammers evidently use the current COVID-19 pandemic to lure victims into investment scams. Most broker and investment scams and MLMs are designed as Ponzi schemes using money from new investors to pay existing investors' fake profits.