How the scam works:
(with video below) The stock market industry is an interesting and risky business to say the least, if you heard about the major crash a few days ago. You may be interested in becoming a stock trader and start researching on the Internet about how to buy stocks online, stock trader opportunities, dividend stocks, or simply look to find a best way to buy penny stocks. Times are tough so an entrepreneurial spirit goes a long way. Buying stock may be an option, but it's also an industry where you have to be really careful. How does the scam work?
Watch the video below to see in action the Buying Stock scam exposed by a victim, or read on.
How does this specific scam work? One day, while you're asking yourself "How I can buy penny stocks?" or you're looking for the stock market trading hours, you may be receiving a text message such as the one in the image above. "Hi, it's Ed at Goldman Sachs [insert any name, for both person and well-known investment banking firm]. I hope the family's good. Listen, my guy sent me a message saying AVRN is going to a dollar so if you want to make a move and buy it you should do i now. Text me later, let me know how it goes."
This message comes to you from a person that you don't know, but he makes it look like he sent it to the wrong person by mistake. This way, you would be let inside a big secret and given a rare chance to get involved in the penny stock trading. The AVRN (digital currency company) message above made its rounds recently being sent to thousands of people at once, raising AVRN's shares to a high number, only to crash later on. It is what is known as a 'Pump and Dump' scheme, where someone promotes a stock they hold, driving up the price based on artificial interest, and then sells before everyone realizes the interest was just manufactured.
Well, in this case the message was sent on social media platforms and apps such as Whatsapp, Viber, Facebook, and so on. Needless to say, you may be receiving a similar message featuring a different publicly traded company which you might want to invest in (via the 'Pump and dump' scheme).
How to avoid:
This fraudulent activity is similar to the Wrong Voicemail scam. Never take unsolicited financial investment advice when it comes to how to buy stocks online, live stocks market, or penny stocks to watch. Especially if they look like they came your way accidentaly. Investing in stocks requires a lot of experience, although some people might claim is a pure lottery.
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