In a simulation of the stock scam, the SFC lured 24,000 potential investors.
The Securities and Futures Commission (SFC) reminded individuals looking to invests to be vigilant of online investment scams.
The SFC had just concluded an online campaign that simulated stock schemes that lure investors through social media.
“Online investment scams may involve stock market manipulation and those who get caught up in them can suffer substantial losses,” SFC CEO Ashley Alder said.
“Investors should stay vigilant and make informed investment decisions rather than relying on stock tips circulating in chat groups or on social media platforms.”
The simulation used web banners that lured victims to join scam-related chat groups, posted in local discussion forums, mobile investment applications and financial news websites.
Those who clicked the banner were then redirected to a webpage where the SFC warned that unsolicited offers of stock tops and investment advice are signs of the ramp and dump scheme.
There were 24,000 individuals who clicked the banner. Around 50% of whom were under 35.
“Younger people may be more vulnerable to these scams. Less experienced investors are urged to carefully consider and verify the information they read online before they invest,” the SFC said.
The ramp and dump scheme involved ramping up share prices of target stocks and then luring investors through social media to buy shares at artificially high prices.
The syndicate later “dumps” or sells the shares, leading to profits for them and substantial losses for the victims.
Read also: SFC order 15 brokers to freeze 32 accounts linked to ‘ramp and dump’ scam
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