State agency to investors: Prepare for Ebola-related scams

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ASC Director Joseph Borg said an analysis of Internet domain names by the North American Securities Administrators Association, of which the ASC is a member, found nearly 1,200 domains with Ebola in their name have been registered with top-level domains, such as .com, .net, .org, since April 2014, and about 1,000 of those registrations have occurred in the last three months.

Antrenise Cole

Reporter- Birmingham Business Journal

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The Alabama Securities Commission is cautioning investors to beware of Ebola-related Internet investment schemes.

ASC Director Joseph Borg said an analysis of Internet domain names by the North American Securities Administrators Association, of which the ASC is a member, found nearly 1,200 domains with Ebola in their name have been registered with top-level domains, such as .com, .net, .org, since April 2014, and about 1,000 of those registrations have occurred in the last three months.

"Our system identified a number of sites that may be suspect," said Jake van der Laan, Director of Enforcement for the New Brunswick Financial and Consumer Services Commission and chair of NASAA's Internet Fraud Investigations project group. "Although we have not investigated any of these sites, a review of domain names indicates that there certainly appear to be those intent on raising Ebola-related funds or otherwise trying to leverage the crisis for financial gain."

Van der Laan said several of the Ebola-related domain names had the words fund, invest, stock or futures in their titles.

Borg urged individuals to contact the Alabama Securities Commission to determine if both the promoter of the investment and the investment itself are licensed and registered.

"Past experience tells us that periods of uncertainty or fear are prime time for con artist looking to make a quick score," Borg said. "Investors should approach with caution any unsolicited Ebola-related investment opportunities, especially those received through the Internet.

Antrenise Cole covers banking, finance, small business lending, venture capital, accounting and law for the Birmingham Business Journal. Click here to follow her on Twitter.