11-08-2021, 04:04 PM
Natasha Ganesan
11 Aug 2021 03:14PM
(Updated: 11 Aug 2021 03:14PM)
SINGAPORE: On the recommendation of an "expert", seven people recently bought shares in a US-listed company. In just 48 hours, they lost more than a million dollars.
The Singapore Police Force (SPF) highlighted this case on Wednesday (Aug 11), as it warned of a resurgence of "pump and dump" scams, a type of stock market manipulation.
In such schemes, fraudsters would artificially inflate the price of a company’s shares by either spreading false positive news about the company or manipulating trading activity to induce others to buy the shares.
"As the unwitting victims buy up the shares, the share price rises," said the police, describing the "pump" stage of the scam.
In the "dump" that follows, the fraudsters then sell their shares in the company while the share price goes up, before stopping all activities.
The share price then plunges, resulting in sharp losses for the victims.
More details at: https://www.channelnewsasia.com/singapor...at-2105416
11 Aug 2021 03:14PM
(Updated: 11 Aug 2021 03:14PM)
SINGAPORE: On the recommendation of an "expert", seven people recently bought shares in a US-listed company. In just 48 hours, they lost more than a million dollars.
The Singapore Police Force (SPF) highlighted this case on Wednesday (Aug 11), as it warned of a resurgence of "pump and dump" scams, a type of stock market manipulation.
In such schemes, fraudsters would artificially inflate the price of a company’s shares by either spreading false positive news about the company or manipulating trading activity to induce others to buy the shares.
"As the unwitting victims buy up the shares, the share price rises," said the police, describing the "pump" stage of the scam.
In the "dump" that follows, the fraudsters then sell their shares in the company while the share price goes up, before stopping all activities.
The share price then plunges, resulting in sharp losses for the victims.
More details at: https://www.channelnewsasia.com/singapor...at-2105416