SEC, FINRA Warn Investors: Don’t be Duped by E-mail, Social Media “Pump-and-Dump”
The U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) warned investors about an alarming spike in the number of spam e-mails linked to "pump-and-dump" stock schemes. In an investor alert entitled Inbox Alert - Don't Trade on Pump-And-Dump Stock E-mails, the SEC said the latest McAfee Threats Report confirms the increase in "pump-and-dump" stock schemes and also warns that the bogus claims could also be dispersed via social media. Investors should also be wary of such schemes on Facebook, Twitter, bulletin boards, and chat room pages. Pump-and-dump schemes are generally easy to spot if investors…