The Canadian Securities Administrators (CSA) has issued a warning about fraudulent “investment groups” promoted on social media like Facebook and Instagram. These groups could be running a scam called a “pump and dump.”
How the scam works:
- Scammers use social media to advertise investment groups promising high returns to would-be investors.
- They artificially inflate the price of a stock they own shares of, by hyping it up.
- Once enough people buy in at the high price, the scammers sell their shares causing the price to crash.
- Investors who bought at the high price suffer significant losses and investor harm.
How they try to lure you in:
- Private WhatsApp chat: The scammers promote the groups on social media platforms. Then they invite would-be investors to encrypted group chats on WhatsApp.
- Fake credentials: They might claim to be a registered professional…
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