IOSCO launches I-SCAN to combat global investment fraud
The International Organization of Securities Commissions (IOSCO) has unveiled its latest initiative aimed at combating investment fraud on a global scale through the launch of the International Securities & Commodities Alerts Network (I-SCAN). This new online portal is designed to serve as a dedicated platform where investors, online platform providers, banks, and financial institutions can verify if suspicious activities related to specific companies have been flagged by regulators worldwide.
The launch of I-SCAN is part of IOSCO’s broader Roadmap for Retail Investor Online Safety, which aims to enhance the protection of retail investors as they navigate the complexities of modern investment landscapes. The Roadmap, initiated in November of the previous year, consists of five distinct waves of activity, with the introduction of I-SCAN marking a significant milestone under Wave Two of this ongoing campaign.
Investment fraud remains a critical issue, with reports indicating that billions of dollars are lost each year due to fraudulent activities and misleading statements. The urgency for investors to exercise due diligence has never been more pronounced, as the tactics employed by fraudsters continue to evolve and become more sophisticated.
I-SCAN is designed to centralise information, allowing investors to identify firms or potential investments that have been reported as unlicensed or fraudulent in their country or abroad. This capability is expected to significantly aid users in avoiding potential scams that might otherwise lead to substantial financial losses.
Financial regulators will play a crucial role in the functioning of I-SCAN, as they will be able to submit alerts directly to the portal, ensuring that relevant information is made readily accessible to users and investors across the globe. This transparency and ease of access aim to empower individuals and institutions in making informed investment decisions.
Rodrigo Buenaventura, Secretary General of IOSCO, emphasised the importance of this initiative, stating, “I-SCAN is a crucial tool in the fight against investment fraud. It provides a means for investors to protect themselves in an increasingly complex environment.” His remarks reflect the collective recognition of the need for robust mechanisms to combat the rising incidence of investment fraud.
The launch of I-SCAN appears to be a timely response to the escalating threats faced by retail investors, with IOSCO positioning itself as a leader in promoting investor safety and transparency. By facilitating a collaborative approach to investment safety through the inclusion of financial regulators from various jurisdictions, IOSCO hopes to build a more resilient framework that deters fraudulent activities.
As the landscape of online investing continues to evolve, the establishment of such a dedicated monitoring system could be seen as a critical step towards enhancing the integrity of financial markets. The creation of I-SCAN underscores the commitment of IOSCO and its member regulators to safeguard investors worldwide, ensuring that they are equipped with the necessary tools to navigate the complexities associated with investment opportunities in a safe and informed manner.
As I-SCAN embarks on its mission to detect and prevent fraud, it remains to be seen how effectively it will fulfil its objectives and reduce the prevalence of investment scams on a global scale, but its establishment marks a notable advancement in the ongoing fight against financial misdeeds.