'Pump-and-dump' stock market manipulation scams on the rise again: Police

At least 21 cases of stock market manipulation scams allegedly involving "high potential" companies listed on either Hong Kong or US stock exchanges have been reported since July this year.

The police said in an advisory on Saturday (Sept 5) that there has been a resurgence of "pump-and-dump" scams since they last warned the public about it in 2021.

In this scam variant, which is essentially a form of stock market manipulation, fraudsters would promote selected shares using false or misleading claims or by creating an appearance of strong market interest.

This is also known as the "pump" phase, intended to drive up demand for those shares and their prices.

Victims would then buy the shares and the fraudsters would then sell off their holdings at the inflated price — also known as the "dump" phase.

After these fraudsters exit the market, the artificial support disappears and the share price typically collapses rapidly, leaving unwitting investors with substantial financial losses.

In one such case, five victims purportedly bought more than a million shares in a Hong Kong listed company on the recommendation of an "expert".

However, the share price fell by almost 75 per cent in a week, resulting in their combined losses exceeding HK$4.6 million (S$744,000).

Spotting signs you are being targeted

According to the police, most victims were approached through social media or messaging platforms such as Facebook and WhatsApp.

The fraudsters create chat groups on these platforms, sometimes using Singapore-registered phone numbers.

They would tout themselves as experienced investors or trading mentors offering investment insights or guidance, sometimes for a fee.

During the trust building phase, fraudsters may first recommend shares that performed well or generated profits for the victims.

Once trust has been established, the victims would be introduced to a "high-potential" company listed on either Hong Kong or US stock exchanges.

They would also be told that its share price is expected to rise sharply in the near future.

"Group members were then strongly urged to purchase the shares immediately after the company’s identity was disclosed," the police said.

During this period, some victims may also encounter accomplices planted in the chat groups.

They would pose as administrators or assistants to contact victims privately and provide additional instructions, reinforce the investment narrative, and maintain pressure on the victims.

Victims would also be asked to provide updates via private chats once the purchases are completed or submit proof of trade.

Police said they believe these accomplices were rewarded based on the number of victims who invested, thereby requiring proof for reward claims.

Some victims were also allegedly told that their trading losses would be reimbursed.

But the fraudsters would become uncontactable or give excuses for not honouring earlier promises.

Members of the public are advised to be wary of stock tips provided online, or by individuals they have not met personally.

No investment or trading strategy can guarantee profits, the police highlighted.

They are also advised to be particularly sceptical of overseas-listed shares with low liquidity and small market capitalisation, as such shares may be more susceptible to price manipulation.

今年7月以来，至少有21起涉嫌操纵股市的骗局案件被报道，这些案件均涉及在香港或美国证券交易所上市的“高潜力”公司。

警方在周六（9 月 5 日）发布的公告中表示，自 2021 年上次向公众发出警告以来，“拉高出货”骗局再次抬头。

在这种骗局变种中（本质上是一种股市操纵），诈骗分子会利用虚假或误导性的说法，或者制造市场对其兴趣浓厚的假象，来推销选定的股票。

这也被称为“拉升”阶段，旨在推高对这些股票的需求及其价格。

受害者随后会购买这些股票，而诈骗者则会以虚高的价格出售他们持有的股票——这也被称为“抛售”阶段。

这些骗子退出市场后，人为支撑消失，股价通常会迅速暴跌，给不知情的投资者造成巨大的经济损失。

其中一起案件中，据称有五名受害者在一位“专家”的建议下，购买了香港一家上市公司的超过一百万股股票。

然而，股价在一周内下跌了近 75%，导致双方合计损失超过 460 万港元（74.4 万新元）。

发现你成为攻击目标的迹象

警方表示，大多数受害者都是通过社交媒体或即时通讯平台（例如 Facebook 和 WhatsApp）被联系上的。

诈骗分子在这些平台上创建聊天群组，有时还会使用新加坡注册的电话号码。

他们会自称是经验丰富的投资者或交易导师，提供投资见解或指导，有时还会收取费用。

在建立信任阶段，诈骗分子可能会首先推荐那些表现良好或为受害者带来利润的股票。

一旦建立起信任，受害者就会被介绍给一家在香港或美国证券交易所上市的“高潜力”公司。

他们还会被告知，该公司股价预计在不久的将来会大幅上涨。

警方表示：“在公司身份公开后，该团伙成员被强烈敦促立即购买股票。”

在此期间，一些受害者可能还会遇到安插在聊天群组中的同伙。

他们会冒充管理员或助理，私下联系受害者，提供进一步的指示，强化投资的说法，并持续向受害者施压。

受害者还会被要求在交易完成后通过私聊提供最新信息，或者提交交易证明。

警方表示，他们认为这些同伙获得的奖励与受害者的捐款人数成正比，因此申领奖励需要提供证据。

据称，一些受害者还被告知，他们的交易损失将会得到补偿。

但诈骗分子会变得联系不上，或者找各种借口不履行之前的承诺。

建议公众对网上或自己未曾谋面的人提供的股票建议保持警惕。

警方强调，没有任何投资或交易策略能够保证盈利。

他们还被建议对流动性低、市值小的海外上市股票保持特别怀疑的态度，因为这类股票可能更容易受到价格操纵。