If the sender’s e-mail does not match the company he supposedly represents, it’s a scam. Fraudsters who conduct stock promotions are often paid promoters or company insiders who stand to gain by selling their shares after creating a buying frenzy and pumping up the stock price. The promoters may have gotten their shares privately at a very low cost with the intention to profit from their promotion rather than to invest in the company. Company issues a lot of shares without a corresponding increase in the company’s assets. Will it be smart, strategic and sexy enough to increase sales and market share, or will the company’s lack of vision give an edge to the competition? Increase in stock price or trading volume linked to promotional activity. Microcap stocks (low-priced stocks issued by the smallest of companies), including penny stocks (the very lowest priced stocks), are more susceptible to stock price manipulation. Investors can also use SALI to find information about certain people who have had judgments or orders issued against them in SEC court actions or administrative proceedings. Well-arranged bookshelf is highly unstable, a small push of disturbance would suffice to disrupt the orderliness and scattered books represent more stable state (how much more you can disturb the already disheveled system!). How Much Scientific Research Is Actually Fraudulent?
Before investing in a company based on a stock promotion, carefully research the investment (read Ask Questions) and keep in mind that the promoter may be trying to get you to buy into the hype in order to sell his or her own shares at your expense. For more information about how to research an investment, read OIEA’s publication Ask Questions. Be wary of anyone who promises that you will receive a high rate of return on your investment, especially with little or no risk. Be highly suspicious if the promoter promises you a high rate of return on your investment. Even if a promoter makes specific disclosures about being compensated for promoting a stock, be aware that fraudsters may make such disclosures to create the false appearance that the promotion is legitimate. Direct Mail: Fraudsters may send you high-end glossy mailers promoting certain stocks. These fraudsters can quickly send your money overseas, with little chance of you being able to get it back. “Once it’s all set up and in place – and you know where to find these Filipino workers, how to train them, all this sort of stuff – that’s when you can set things in motion and step back.” One Airbnb listing managed by Elaine & Team, an account used by Baumann’s company, includes images watermarked with Lusso Management’s logo. Similar to other scam text messages, these messages usually say there’s been a security issue with your account.
Internet Chat Rooms: Fraudsters often use aliases in Internet chat rooms to hide their identities and post messages urging investors to buy stock in microcap companies based on supposedly “inside” information about impending developments at the companies. In some cases, the fraudsters claim to invest customers’ funds in proprietary crypto trading systems or in “mining” farms. Investment Newsletters: In some cases, an investment newsletter may promote a particular stock because the newsletter publisher has been paid to do so. Online Advertisements: Fraudsters may purchase pop-up ads or banner ads that are targeted to a particular group based on demographics or interests. If you have questions concerning the meaning or application of a particular law or rule, please consult with an attorney who specializes in securities law. The FBI Victim Services Division is responsible for ensuring that victims of crimes investigated by the FBI are afforded the opportunity to receive the notification and services as required by federal law and the Attorney General Guidelines for Victim and Witness Assistance. Some hint at the availability of a vaccine, and others claim to be from charitable organizations looking to raise money for victims. This is also showing positive results – one recent bogus claim (for an engagement ring that was reported as lost, but wasn’t) resulted in a savings of 2,200 for the insurer. Click here for a list of recent SEC trading suspensions. Ask the SEC a question.
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All investments have risk, and investors should question any so-called “guaranteed” return. The SEC’s Office of Investor Education and Advocacy is issuing this Investor Alert to warn investors about fraudsters who promote a stock to drive up the stock price and then sell their own shares at the inflated price, making money at investors’ expense. The Office of Investor Education and Advocacy has provided this information as a service to investors. The SEC’s Office of Investor Education and Advocacy (OIEA) and the Commodity Futures Trading Commission’s Office of Customer Education and Outreach (CFTC) warn investors to scrutinize investment opportunities through websites purporting to operate advisory and trading businesses related to digital assets. SEC and CFTC staff have recently observed investment scams where fraudsters tout digital asset or “cryptocurrency” advisory and trading businesses. You’ll additionally need to be on the lookout for phishing scams in the form of promoted or shared social media posts. It could start with someone offering to buy something you advertised, pay you to do work at home, give you an “advance” on a sweepstakes you’ve supposedly won, or pay the first installment on the millions that you’ll receive for agreeing to have money in a foreign country transferred to your bank account for safekeeping. If you have already invested in an offering you think may be fraudulent or you have been asked to pay additional money to get back money from an investment, report it to the SEC or CFTC. Cash App, the popular person-to-person (P2P) payment service application from Square, has been steadily growing since its debut in late 2013. The service’s growth has been fuelled by a promotion marketing campaign offering cash giveaways to those who engage with the brand on various social media platforms. Read Investor Alert: Social Media and Investing — Stock Rumors.
