21 cases of ‘pump-and-dump’ stock market manipulation scams recorded in two months: Police
Singaporean police have reported a surge in 'pump-and-dump' stock scams, with 21 cases recorded since July. These scams involve fraudsters using social media to manipulate share prices of overseas-listed companies, leading to significant financial losses for victims.
Why it matters
The rise in these scams underscores the risks associated with online investment advice and the need for increased public vigilance.
Victims lost over $700,000 after shares they purchased in a HK-listed company nosedived.
Listen SINGAPORE – A total of 21 stock market manipulation scam cases involving companies listed overseas have been reported in Singapore since July, with one involving a Hong Kong-listed firm recording losses of more than $ 700,000 .
In an advisory on Sept 5, the police said they have noticed a resurgence in the scam variant, which they last warned the public about in 2021.
In what is commonly known as “pump-and-dump” scams, scammers posing as investment experts promote selected shares using false or misleading claims, creating an appearance of strong market interest in the company.
After demand and prices for these shares are driven up through this “pump” phase, scammers sell off their holdings at the inflated price in the subsequent “dump” phase, causing share prices to collapse rapidly.
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