That private investment club may be controlling the stock

A friendly message, social-media advertisement, or supposed market expert invites you into an exclusive investment group on a messaging app. Members post winning trades and the organizer recommends a low-priced stock that is about to “explode.” The excitement can be manufactured by fake accounts and bots.

How a ramp-and-dump scheme works

1. Criminals quietly acquire a large position in a thinly traded stock.
2. They recruit investors through social media and private chat groups.
3. They impersonate analysts, brokers, or respected financial figures and coordinate a buying date.
4. Group members buy, pushing the price higher.
5. The organizers sell their holdings. The price collapses and late buyers absorb the losses.

Warning signs

• An accidental text or unsolicited ad turns into an investment invitation.
• The group moves to WhatsApp, Telegram, or another private messaging service.
• A famous analyst or financial institution supposedly offers private stock tips.
• The organizer guarantees returns or promises to cover losses.
• You are pressured to buy a low-volume stock before an alleged announcement.
• Someone asks for brokerage credentials, remote access, identity documents, or permission to trade for you.

Verify before you invest

Independently check the person and firm through FINRA BrokerCheck and the SEC's Investment Adviser Public Disclosure database. Contact the firm through its verified website. A real professional's name, photo, or video can be copied or generated.

Do not make a trade because a chat group appears busy or because screenshots show profits. Those signals are easy to fabricate.

If you invested

Stop sending money, preserve the group messages and trade records, contact your brokerage's fraud department, and report the incident promptly to IC3.gov and the SEC. Be wary of anyone offering to recover the loss for an upfront fee.

Source: FBI Internet Crime Complaint Center, which reported at least a 300% increase in complaints mentioning ramp-and-dump stock fraud during 2025 compared with 2024.