21 cases of ‘pump and dump’ stock market manipulation scams recorded in two months: Police
Victims lost over $700,000 after shares they purchased in a HK-listed company nosedived.
Singapore police have recorded 21 cases of stock market manipulation scams over the past two months, with losses totaling over S$700,000 in one instance. The scams, known as "pump and dump" schemes, involve scammers who pose as investment experts to promote shares through false or misleading claims. After driving up demand and prices, the scammers sell their holdings at inflated prices, causing rapid declines and substantial losses for victims.
In a recent case, a couple lost $500,000 after investing $650,000 in a Hong Kong-listed company. Scammers often approach victims through social media or messaging platforms like WhatsApp, creating chat groups to gain trust before urging victims to buy shares of supposedly high-potential companies listed on foreign exchanges. Some scammers may also plant accomplices within chat groups to further pressure victims into purchasing shares.
Victims may be asked to provide proof of their trades to maintain the appearance of legitimacy, but scammers eventually become uncontactable and refuse to reimburse losses. The police advise the public to be cautious of unsolicited stock tips and high-pressure sales tactics, and to be especially wary of overseas-listed shares with low liquidity and small market capitalisation, which are more susceptible to manipulation.
Written by urgent.news from Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
