Hong Kong Pump and Dump Scams
Just like any other global markets, there are risk factors that need to be considered before trading. For example, currency risks, political risks, interest rate risks.
Beware of Pump and Dump SCAMS involving HK Stocks and the typical scam technique is as follow:
- Scammers reach out to targeted persons through social media like WeChat or Linkedin;
- Scammers then befriend individuals for networking, business or investing opportunities;
- After gaining the trust, scammers encourage investing in specific Hong Kong Exchange listed counters with guaranteed returns;
- Once enough individuals believed the scammers and started buying the targeted share, the share price will increase;
- Scammers then dump their shares for profit and are unable to be found;
- The share price will fall substantially and the victims suffer losses.
(Source: Singapore Police Force, seedly.sg)