COVID-19 Fraud Alert: Pump-and-Dump Scams
Fraudsters are using the fear of economic conditions related to COVID-19 to target victims using pump-and-dump scams. A pump-and-dump scam is a type of investment fraud. Fraudsters artificially increase the price of a stock they own by encouraging other investors to buy it. Fraudsters then sell their shares; the price falls and investors lose money.