INVESTMENT SCAMS: SHARE PROMOTIONS AND HOT TIPS
Our Hot Tip on Share Promotions
A common way Australian households are being scammed is through emails, social media posts or advertisements offering exclusive share price advice and information. This promise of exclusive information frequently lures people into dodgy investments, and people often can lose their life savings.
These exclusive offers can come through as emails, forum posts or phone calls. They will often encourage you to act urgently, or you will miss out on a once in a lifetime opportunity. To protect yourself, make sure you don’t act immediately, and check the source is credible, and operate legally before following up.
The scammer often says they are predicting a company is going to increase in value, and may come across like an inside tip. In many cases, the scammer has often bought stock at a cheap price, and is aiming to boost the price of stock. Once they have convinced a number of people to buy in and the share price inflates, they sell their stock. This means the scammer has made a handsome profit, but it often leaves most other shareholders with virtually worthless stocks.
