ADCC and SFC warn investors about “Ramp and Dump” scams

2021-02-11

Yesterday, the Anti-Deception Coordination Centre (ADCC) and the Securities and Futures Commission (SFC) alerted the public about online investment scams in a short video jointly produced by the two parties.

In the video, investors are warned to beware of fraudsters who set up investment groups on social media platforms and claim to offer stock tips or inside information. In some cases, well-known investment advisors and market commentators have been impersonated as part of these scams.

The video features a dramatisation of a typical “ramp and dump” scheme, which is a form of stock market manipulation. Fraudsters "ramp" up the price of a stock and use social media to lure investors to buy at an artificially high price. The fraudsters then sell or "dump" the stock. Most of the time, the investors do not know the true identities of the people who lured them into the trap.

Hope you enjoy the video:

https://www.facebook.com/HongKongPoliceForce/videos/404394320626114/