Like all con games, be they online or in person, the con man is trying to deceive you somehow. In this case, by artifically generating excitement around a stock, the con men can lure hundreds of people to purchase a particular stock. This purchasing excitement artificially inflates and "pumps up" the value of the stock, whereupon the con men will "dump" sell their own shares to reap the dishonest profits. This "pump and dump" spamming is a form of "phantom trading", which is illegal.
So, What Can You Do About These Online Scams and Investment Cons?
Answer 1: Be skeptical about any random unsolicited email that promises stock tips. If these were legitimate investment planners with legitimate stock advice, they would be dealing with their own existing clients, not recruiting via random email. As with any smart skepticism: if it's too good to be true, it probably is a scam.
Answer 2: Here are specific suggestions on how you can respond to phishing and online cons.
So, What Can You Do About These Online Scams and Investment Cons?
Answer 1: Be skeptical about any random unsolicited email that promises stock tips. If these were legitimate investment planners with legitimate stock advice, they would be dealing with their own existing clients, not recruiting via random email. As with any smart skepticism: if it's too good to be true, it probably is a scam.
Answer 2: Here are specific suggestions on how you can respond to phishing and online cons.