While this story is unique because of the age of the culprit, Internet fraud is an epidemic. The SEC has brought more than 60 Internet-related enforcement actions so far this year, and, if they had the manpower, the number would probably be substantially higher. The same day that the story about the high school hi-tech hacker broke, the SEC also announced that it was bringing action against a Las Vegas firm accused of selling millions of dollars worth of fake investments over the Internet. The Ponzi scheme guaranteed customers risk-free, guaranteed investments that would generate returns of up to 500 percent. People were lining up to hand over their money.
Regulators constantly implore people to be leery of investments offered on the Internet.
However, greed often masks common sense.