Pump and dump
Investment fraud is the number one scam in Canada when it comes to dollars lost. Those who purchase stocks and are aware of the risks involved can't always spot when it's fraud. Never invest more than you can afford to lose.
Means of contact
- Internet
- Phone
The scammer pumps up the value of a stock, usually one that they already own, and once investors buy in and the stock hits a peak, the scammer dumps the stocks, leaving the victims holding worthless stock.
Tactics used
Offers an incredible deal on low-priced stocks and high returns.
What to look for
- Investment offers from people or organizations you don't know
- High-pressure sales tactics
- Low-risk investments with high returns