Scam warning over pump-and-dump scheme, WhatsApp groups and fake investment advisers

“They then persuade investors to purchase low-priced shares in [the] overseas company, artificially inflating the share price.”

Scammers promote investment club group chats through social media.

The FMA said scammers often published ads impersonating business leaders or financial commentators to promote the group chats.

“In some cases, the scammers send unsolicited invitations to the group chats through messaging platforms like WhatsApp.”

The scammers might initially recommend purchasing shares of a big, well-known company such as Nvidia or Tesla.

“This is a tactic to build trust before drawing potential victims into the pump-and-dump scheme.”

The scammers then sell their holdings at a profit.

Leonardo DiCaprio’s Jordan Belfort ran a 1980s penny stock pump-and-dump scheme. Photo / Mary Cybulski

Then the share price collapses, leaving investors not in on the scam with big losses.

And sometimes the victims are exploited again.

“After a victim suffers a loss, the scammers often claim, falsely, that the victim is entitled to compensation or reimbursement.”

That tactic is known as a recovery room scam.

“The scammers use these claims to harvest personal information and further payments from the victims,” the FMA said.

“Stop engaging with the scammers,” it advised people.

“Do not provide any further personal information or payments to them. Report the group chats to WhatsApp and block the scammers on all devices.”

The FMA has released numerous phone numbers and WhatsApp group details it alleges are involved in the scams.

The Herald tried calling some of the numbers but two appeared to be disconnected.

Another went to a voicemail message saying: “The person you are calling cannot accept calls at this time.”

Pump-and-dump WhatsApp group chats

276The Stock Investment Elite Wealth Group 1Investment Navigation Group 1Stock Market Tracking group Z1, +1 (314) 665-7424Stock Market Trends 51, +1 (856) 500-8420 and +1 (504) 657-6110Stockmarket navigation group302, +1 (504) 261-9422 and +1 (808) 216-7031US Stocks Investment Group-672

Fictional investment advisers

Amy Mills, +1 (681) 427-8556David Greene (imposter)Jane Share GuruLaura Marcuzzi (imposter), +44 7563 754111Nicole Vera (imposter), +44 7731 897748Scott Horsburgh (imposter), +1 (217) 862-4364

The FMA said people who lost money to the scams could phone Victim Support on 0800 842 846.

The Herald’s Scambusters series has more information and advice on scams.

John Weekes is a business journalist covering aviation and court. He has previously covered consumer affairs, crime, politics and courts.

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