CFTC issues customer advisory on fraud

-The Hagstrom Report

The Commodity Futures Trading Commission today issued a customer advisory informing the public to be on alert for frauds seeking to profit from recent market volatility related to the COVID-19 (coronavirus) pandemic.

“Fraudsters commonly use major news events, such as the spread of COVID-19, to add credibility to their cons or manipulate emotions,” the advisory said. “You can better protect yourself by learning to recognize common mental biases that everyone has, as well as common fraud tactics — and by taking a few preventative steps. Reporting frauds you encounter can also help protect others during these challenging times.”

“During this period of market volatility, we want to ensure the public has important information to help detect and stop fraud,” said CFTC Chief Communications Officer and Director of Public Affairs Michael Short.

“We will aggressively pursue misconduct in our markets tied to the impact of the coronavirus pandemic,” added CFTC Director of Enforcement James McDonald. “There is never an appropriate time to prey on innocent people’s fears.”

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