For Financial Capability Month, CFTC Resources Help Crack Down on Fraud

Commissioner says agency will investigate trades after controversial tweets

Obama Returns Portion of Pay to Show Solidarity with Workers

President Barack Obama in March declared April National Financial Capability Month, and the United States Commodity Futures Trading Commission has released resources to help people identify and avoid fraudulent financial schemes.

“All Americans deserve the chance to turn their hard work into a decent living for their families and a bright future for their children,” President Obama said in a statement. “Seizing that opportunity takes more than drive and initiative — it also requires smart financial planning. During National Financial Capability Month, we recommit to empowering individuals and families with the knowledge and tools they need to get ahead in today’s economy.”

Obama said to observe this month with programs and activities to improve their understanding of financial principles and practices.

“My Administration is dedicated to helping people make sound decisions in the marketplace. Last year, we partnered with businesses and community leaders to roll out new public and private commitments to increasing financial literacy. We released a new financial capability toolkit to help schools and employers as they launch their own initiatives.”

Meanwhile, CFTC chief Bart Chilton says his agency will investigate trading that took place just after a fake tweet from the Associated Press said that the president had been injured in an attack at the White House. Many stocks went into a nosedive.

According to Fox Business:

Mr. Chilton, a Democrat, told The Wall Street Journal that the CFTC is looking into the trading of 28 heavily traded futures contracts during a five-minute period after a false tweet from the Associated Press’s Twitter feed said there were two explosions at the White House and President Barack Obama was injured. A group identifying itself as the Syrian Electronic Army claimed responsibility for the fake tweet.

AP quickly said the tweet was the result of an outside group’s hack, but by then the market had already nosedived. Automatic trading systems had pulled back from trading or started selling as the decline accelerated, potentially turning what was a short-lived dip into a dramatic selloff that erased some $200 billion from the stock market.

Learn more about fraudulent financial activity here.

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