Stock Market Scam

Is someone asking you to purchase a stock that offers a high rate of return with zero risks? Don’t fall for this stock market scam!

Stock Market Scam

What Is A Stock Market Scam?

Stock market scams are a common way to steal money from stock market investors. These scams primarily involve misrepresenting or falsifying information that investors use to make decisions. The result is that the victim is left owning a stock that has little or no value whatsoever.

What Are the Types of Stock Market Scams?

Understanding the various types of stock market scams will help you steer clear of them. Here is a list of common stock market scams that you should be aware of:

1. Pump and Dump

This is an illegal practice where fraudsters purchase shares in a little-known stock and then spread false information to drive up the price. Once the stock reaches a target price, the fraudster sells it, raking significant profits. Those left with the stock then have to sell their shares at a loss.

price, the fraudster sells it, raking significant profits. Those left with the stock then have to sell their shares at a loss.

2. Advance Fee Schemes

In this stock market scam, the scammer asks an investor for an advance fee for the privilege of liquidating the poor-performing investment. Once the victim sends the money, they never hear from the scammer again – and no one purchases their shares.

3. High Yield Investment Fraud

High-yield investment fraud comes with guarantees of high rates of return with little to no risk. The truth is that there’s no such thing as a guaranteed return or zero-risk investment.

How to Stay Safe from Stock Market Scams?

  • Be skeptical of schemes that sound too good to be true.
  • Invest through a reputable brokerage
  • Research and ask questions before investing in a new financial or investment product.

Have you lost your money in a stock market scam?

File a complaint today!