Tackling Pump & Dump Scam With Money 2.0 Conference Experts: A Review
Contents 1. What Is Pump & Dump Scam? 2. How The Fraud Takes Place? 3. Reviewing Tips To Detect The Pump & Dump Scam
What Is Pump & Dump Scam?
Pump: → Money 2.0 Conference’s experts reviewed and defined pump in the pump & dump scam as a well-thought-out scheme by con artists to drive up market prices. → This campaign is often used to propagate misleading information about the prospects for a listed stock using social media and online forums. Dump: → Whereas they defined the dump in the spam as when the price increases, the culprits sell their shares at the Money 2.0 Conference. → New investors will lose money if prices drastically fall after the traders sell their shares.
★ In a pump-and-dump fraud, inexperienced investors are urged to artificially acquire shares of a company to drive up the share price, reviewed the panelists of the Money 2.0 Conference.
★ Recommendations based on false or misleading information drive up the price of a stock.
★ By circulating rumors, fake information, or excitement on social media platforms or messaging apps, pump-and-dump traders spark interest in a shop to raise its price.
★ Once the stock price rises, the fraudsters sell the stock at a premium review the financial experts who attended the Spring Edition of the Money 2.0 Conference.
How The Fraud Takes Place?
More modern communication methods have replaced call centers and boiler room activities. As discussed at the anti-financial scam session of the Money 2.0 Conference, there are several advanced channels that are being used by the spammers. Check out the upcoming slides to gain a better understanding of it!
As per the experts who will attend the upcoming summit of the Money 2.0 Conference, fraudsters typically carried out pump-and-dump scams through: ● Cold calling. ● Sending a lot of SMS and emails. ● Creating different YouTube channels and hosting webinars. ● Maximizing social media use-- Twitter, WhatsApp, Telegram, and newsletters.
Tips To Detect The Pump & Dump
Scam
FinTech entrepreneurs who are bravely dealing with the pump and dump spam took it to the global platform of Money 2.0 Conference to share a few proven tips so you can avoid them effectively. Check them out in the next slide!
Keep An Eye Out For Obvious Warning Signs
A promise of extraordinarily high investment returns. Situations in which pressure is being exerted because there is a limited time window. Any claims that the guidance is based on secret information or personal information.
Aware of Advertising Materials
Many content creators can influence their viewers and followers on websites like YouTube, Twitter, Instagram, and others. If you want to avoid financial fraud, as was frequently addressed at the Money 2.0 Conference, you should pay close attention to the disclaimers when these content creators discuss or promote a particular stock or cryptocurrency.
Taking Care
Before investing, an investor should conduct their due diligence. Suppose you are too busy or lack research abilities. In that case, you may invest through a mutual fund or an intelligent investment service, as suggested by the finance whizzes who attended the summit.
Thank You! This Presentation Is Prepared By, Lakshay Mohanpuriya Manager, Money 2.0 Conference