SEC Forms Cross-Border Task Force to Target $1B+ Global Fraud Schemes
The U.S. Securities and Exchange Commission (SEC) has launched a new Cross-Border Task Force to take on international fraud schemes...
Quick overview
- The SEC has established a Cross-Border Task Force to combat international fraud schemes affecting U.S. investors.
- The initiative will focus on market manipulation tactics like 'pump-and-dump' schemes and hold accountable auditors and intermediaries involved.
- The task force aims to enhance investor protections and modernize regulations in a globalized financial system.
- Collaboration with global regulators will strengthen oversight and ensure that cross-border fraud is addressed effectively.
The U.S. Securities and Exchange Commission (SEC) has launched a new Cross-Border Task Force to take on international fraud schemes. The initiative, announced Friday, will investigate foreign companies and intermediaries suspected of violating U.S. securities laws.
At the top of the list is market manipulation, particularly “pump-and-dump” schemes that target U.S. retail investors. The agency said the task force won’t just focus on fraudulent companies but also on auditors, underwriters and other market “gatekeepers” that enable bad actors to get into the American capital markets.
SEC Chair Paul Atkins said: “We welcome companies from around the world to access the U.S. capital markets. But we won’t tolerate actors who use international borders to skirt U.S. investor protections.”
Pump-and-Dump Schemes Under the Microscope
Pump-and-dump schemes are a recurring threat in global markets, especially in cryptocurrency and thinly traded securities. These scams involve insiders artificially inflating asset prices through aggressive promotion before selling off at inflated levels, leaving ordinary investors with big losses.
🚨 BREAKING: SEC Forms Global Task Force 🚨
The SEC has established a new Cross-Border Task Force aimed at tackling fraud, pump-and-dump schemes, and overseas bad actors preying on U.S. investors. Big implications ahead for the crypto space including $XRP. 🌐💼 pic.twitter.com/6QHgr35PL3
— The Real Axel vasa (@AxelV22978) September 6, 2025
According to recent regulatory estimates, billions of dollars are siphoned off annually through these tactics. Retail investors, drawn in by viral online campaigns or meme tokens, are the most vulnerable. The SEC’s new task force will strengthen the Division of Enforcement’s reach and coordinate with global regulators to combat these risks.
Key areas of focus for the task force:
- Offshore companies suspected of securities fraud.
- Auditors, underwriters and intermediaries enabling misconduct.
- Pump-and-dump operators targeting thinly traded assets.
- Recommendations for new disclosure rules and investor protections.
Stronger Protections for Investors
The SEC said the initiative is part of a broader strategy to modernize investor protections in a globalized financial system. Collaboration across SEC divisions will allow the task force to deploy advanced investigative tools, go after foreign entities and evaluate policy changes.
Meanwhile, U.S. regulators, including the Commodity Futures Trading Commission (CFTC), are warning investors about fraudulent schemes in crypto and other speculative markets.
By consolidating efforts, the SEC is sending a message: cross-border fraud won’t be shielded by geography. The task force will significantly strengthen regulatory oversight, market integrity and protect trillions in U.S. capital markets.
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