This one, which plays on greed, is one of the oldest digital rip-offs on the books. You get an email If you are able to buy shares now, you’ll receive a sizable fortune as a reward.
- Someone you don’t know promises you an “inside” deal. Why would a stranger pick you out to make rich? Does that make any sense?
- You are offered a can’t miss stock to make you rich. There is no such stock – and if there were, why would anyone want to sell it?
One of the most popular stock schemes is called “pump and dump.” Here’s how it works.
A group of crooks owns a huge block of stock in an unknown company(most of them don’t make a penny), preferably one that has a semi-exciting technology name. They get on the Internet and begin flooding cyberspace with false rumors about how this company has some breakthrough technology or just signed a super deal.
After the stock goes up, the crooks decide when they think it has gone as far as it will go and then they sell their big block of stock for a fat profit. When they sell, the price drops and all the people they conned into buying lose money.