300 Percent Increase in American Investors Defrauded by ‘Ramp-and-Dump’ Stock Fraud: FBI

There has been a surge of criminals targeting stock investors in the United States in a “ramp-and-dump” stock manipulation scheme via messaging apps and social media platforms, the FBI said in a July 3 alert.

In the scheme, “investment clubs” are promoted among potential targets. These clubs are often bots or fake accounts, and the promotional messaging directs victims to secure messaging apps where the group operates. Scammers impersonate legitimate brokerage firms or well-known stock analysts to appear credible.