Rep. Axne Introduces Legislation to Protect Consumers and Investors From COVID-19 Fraud

May 8, 2020
Press Release
Legislation would help guard against counterfeit, deceptive, and malicious attempts to take advantage of Americans during global pandemic

Today, Rep. Cindy Axne (IA-03), a member of the House Financial Services Subcommittee on Investor Protection, introduced legislation to create a new Consumer and Investor Fraud Working Group that will help protect Americans from fraud during the coronavirus (COVID-19) pandemic.

The working group created by the COVID-19 Fraud Prevention Act would help protect against fraudulent products or investment opportunities, deceptive marketing, and malicious scam attempts on Americans during the COVID-19 pandemic, as well as assist those who have been victims of fraud.

“In uncertain times, many families and individuals can be unsure where to turn and what information to trust – and unfortunately not everyone will have Iowans’ best interests at heart. Any and all malicious attempts to mislead or rip off Iowans, some of whom may already be in dire financial situations, must be fought with every resource we have available,” said Rep. Axne. “With this legislation, we can protect Americans and guard our families and communities from deception or financial ruin.”

The legislation mandates the Consumer and Investor Fraud Working Group be created as a joint collaboration between the Securities and Exchange Commission (SEC) and Bureau of Consumer Financial Protection (CFPB).

As of Monday, the Federal Trade Commission (FTC) has recorded over 37,000 reports of coronavirus-related fraud, for a total loss of more than $25 million. These include attempts to collect financial information by pretending to be the government, market false medical cures or prescriptions, and promises to help reduce outstanding debt.

The SEC has also issued more than 30 trading suspensions for stocks believed to have inaccurate or unreliable information in connection with COVID-19.

In the last two months, the CFPB has also received over 53,000 consumer complaints, including reports of attempted collection of debts not owed, false statements, and other instances of scam or fraud.

Rep. Axne has included guidance to avoid COVID-19 related scams in her Coronavirus Resource Guide and on her website.

Issues: 
Government Reform