Pump and Dump Scam

Promoters hype a low-value stock or cryptocurrency through social media and unsolicited messages to inflate its price, then sell their own holdings at the peak, leaving new buyers with a worthless investment.

A group of promoters accumulates shares of a low-value, thinly traded stock or a new cryptocurrency token, then floods social media, messaging groups, and unsolicited emails with hype claiming the price is about to explode. As unsuspecting buyers rush in and drive the price up, the promoters quietly sell their own holdings at the inflated price, and once they've cashed out the promotion stops, the price collapses, and everyone who bought in during the hype is left holding a worthless or near-worthless investment.

• Unsolicited "hot tip" messages pushing a specific stock or crypto token.
• Coordinated hype about the same ticker appearing across many accounts at once.
• Claims of guaranteed, imminent, massive price gains.
• Pressure to buy immediately before "it's too late."

• Be skeptical of unsolicited stock or crypto tips promising huge, fast gains.
• Research a company's fundamentals independently before buying based on social media hype.
• Watch for coordinated promotion of the same ticker across many accounts at once.
• Never invest based on pressure to "buy now before it's too late."