On 15 December 2023, the International Organization of Securities Commissions (IOSCO) issued a statement on the risk of online harm to retail investors from investment scams and frauds. IOSCO has issued the statement noting that with growing online retail investor participation there has been a rise of ‘bad actors’ using sophisticated and fraudulent tactics to build trust and exploit vulnerabilities.
The statement serves as:
- A warning to retail investors about the serious perils of online harm.
- A call to action to regulators to respond holistically and innovatively to online harm, including by working with players in the broader online harm ecosystem.
- An invitation to other relevant stakeholders, including legislators, law enforcement agencies, search engine operators, social media platforms and other intermediaries and facilitators to support global efforts to reduce online harm.