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 scamScam When someone tries to make money by misleading or tricking another person.+ read full definition is a type of investmentInvestment An item of value you buy to get income or to grow in value.+ read full definition fraud. Fraudsters artificially increase the price of a stockStock An investment that gives you part ownership or shares in a company. Often provides voting rights in some business decisions.+ read full definition they own by encouraging other investors to buy it. Fraudsters then sell their shares; the price falls and investors lose money.