SEC starts a fake ICO campaign

17 May 2018

In a move to help unwary and unwitting investors to identify fraudulent activity associated with the Initial Coin Offerings, the U.S. Securities and Exchange Commission has launched a fake website with the would-be toke crowdsale campaign held by the fictitious travel company.

This week the Commission reported the launch of an illustrative ICO under the title ‘HoweyCoin’, a name apparently echoing the Howey Test, a procedure used by the SEC to identify whether a specific token sale may be viewed as a security investment. The website purposefully poses itself as too good to be true for investors, as the regulator seeks to educate confiding investors the reality of investment frauds and Ponzi schemes.

HoweyCoin

Meantime, the website does not operate as real ICO resources, because in case an investor tries to participate in the token sale, he/she will be redirected to the educational resource of the SEC, where it will provide informational materials with guidelines and recommendations for investors to avoid being scammed.

On the website visitors can even see fake testimonials from Twitter accounts with a list of the company employees behind the project. The reality of identities behind these names is questionable, as no links to real profiles in social media or professional details are provided.

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