The Financial Industry Regulatory Authority’s (FINRA) issued a new Investor Alert last week called “Messaging Apps Are Latest Platform for Delivering Pump-and-Dump Scams.” FINRA warns investors of stock promotions sent through messaging apps such as WhatsApp. WhatsApp users were inundated with text messages touting the stock of Avra Inc. The messages appeared to be sent from well-known brokerage firms and claimed that the microcap stock seemed to be sent from individuals at well-known brokerage firms and claimed the stock was “going to double in the next few days.” This is the latest way scammers are reaching out to investors. They try to convince investors to buy the stock over the applications and then the buyers “pump” up the price of the stock. Once this happens, the fraudsters “dump” their owns shares by selling them at a peak. In the end, the investors are left with worthless stock.
If you lost money in your investment portfolio as a result of investing in a”pump and dump” stock, you may be able to recover your loses through securities arbitration before FINRA.
Scarlett & Hirsch, P.A. has over thirty-five years of combined experience representing investors who have lost money as a result of unsuitable investment advice and misrepresentations. Our consultations are free of charge and no attorney’s fees are collected unless we are able to obtain a recovery on your behalf (costs are additional). Please contact us to discuss your rights (561) 278-6707.