Watch out for the latest email scam involving stock tips and other investing tips. The latest attempt at the age-old “pump and dump” investing scam is by sending “misdirected” emails. Here’s how it works:
You receive an email that was “meant” for someone else, extolling the virtues of a particular stock or investment. It pumps up the company. The hope is that you will read the email and think that it is one of those stock tips that can lead to a savvy investment. The idea is to get people to buy the stock and then when the price is artifically inflated, whoever has the stock dumps it. They get a great price, and everyone who fell for the investing scam gets burned.
Watch out for these “investing tips.” Do not follow up on stock tips given by emails from unsolicited sources.
You can learn more at the NASD Web site, a private securities industry regulator.