The FBI warns the public about criminals targeting US stock investors through social media platforms and messaging service applications (apps). The scheme, known as a "ramp-and-dump" stock manipulation, targets US investors through online engagement, often via social media advertisements or messages promoting an "investment club" of fellow investors, some of which may be bots or fake accounts. These promotions typically direct victims to secure messaging apps where the group operates. To appear credible, perpetrators may impersonate legitimate brokerage firms or well-known stock analysts. They secretly control a large volume of a low-priced stock and coordinate efforts to inflate its price ("ramp up") by encouraging investment club members to purchase shares over a period of several weeks or months. Once the price is artificially elevated, the criminals sell off ("dump") their shares at a profit, leaving unsuspecting investors with significant losses as the stock value collapses.
Recognize and Avoid "Ramp-and-dump" Stock Fraud
So far in 2025, the FBI has seen at least a 300 percent increase in victim complaints referencing ramp-and-dump stock fraud from 2024. Investors can protect themselves from potential ramp-and-dump schemes by recognizing the following indicators:
- Unsolicited investment tips received via "accidental" text messages or social media advertisements linking to online investment clubs, often hosted on secure messaging apps;
- Claims from well-known financial advisors or wealth managers offering exclusive stock recommendations through these online clubs;
- Pressure to act quickly based on a supposed market-moving event — such as a company breakthrough, new technology, or government approval; and,
- Urgent pitches to purchase low-priced stocks in new or emerging companies, often paired with promises of dramatic price increases or guarantees to cover any investor losses.
If anyone requests your personal information, access to your financial account(s), or offers a financial benefit in exchange for sharing your information or opening an account, consider this a red flag; your information could be used to open an account through which another party can engage in manipulative activity.
Report Incidents of Investment Fraud
The FBI Internet Crime Complaint Center (IC3) confirms a sharp increase in complaints this past year referencing investment club fraud schemes or ramp-and-dump stock manipulation schemes. The FBI requests investors who suspect they have been victimized by investment fraud to report the incident to the FBI IC3 at www.ic3.gov as soon as possible.