Pump and dump fraud - when investors are deliberately deceived
The so-called "Pump and dump scam is a particularly dangerous form of investment fraud. Shares - often in smaller, barely traded companies - are artificially inflated ("pumped"). The perpetrators then sell their shares at a high profit ("dump"). This leaves aggrieved investors sitting on worthless or massively overpriced shares.
The following shares, among others, are currently in focus:
- HIT
- Ostin Technology (ISIN: KYG679271141)
- Concorde International Group Limited (ISIN: VGG2452S1002)
- Ming Shing Group (ISIN: KYG614401068)
- PTHL - Pheton Holdings Ltd
How does a pump and dump model work?
Typical sequence of a pump and dump scam:
- Dissemination of false information
Alleged "insider tips" on certain shares are spread via WhatsApp, Telegram groups or forums. Victims receive misleading messages about supposedly sensational business opportunities or takeovers. - Creation of artificial demand
Often through aggressive marketing, email spam, fake analyses and phone calls from supposed advisors. Investors are urged to make ever larger investments. Transfers are usually made to foreign accounts. - Sale by the perpetrators
As soon as the share price has risen artificially, the perpetrators sell their shares. - Price decline
The share price collapses abruptly - the victims are left with considerable losses.
How we help pump and dump victims
When on Law firm specialising in investment law and investment fraud We represent investors throughout Germany and internationally who are victims of Pump and Dump shops have become. Our services include
- Professional criminal charges at specialised public prosecutor's offices for cybercrime with subsequent inspection of files
- Enforcement of claims for damages against banks, trading platforms, brokers or social media providers
- Repayment claims against offenders, middlemen or platforms
- Co-operation with investigating authorities in the investigation of cross-border fraud networks
- Experience in the adhesion processto assert claims for damages already in the criminal proceedings
We have already successfully recovered money for investors in numerous proceedings.
What those affected should do now
Many injured parties hesitate due to uncertainty or shame - but time is of the essence. The faster you act, the greater the chances of recovering lost capital.
- Secure evidence (chats, bank transfer receipts, emails).
- Do not make any further payments.
- Press criminal charges.
- Contact a specialist lawyer for banking and capital market law.
FAQ for "Pump and Dump Fraud"
"Pump and dump" refers to a scam in share trading. This involves artificially inflating the price of a share ("pump") and then selling it at a profit ("dump"). Investors are left with worthless or overpriced shares.
Currently, the shares of HIT, Ostin Technology, Concorde International Group Limited, Ming Shing Group and PTHL (Pheton Holdings Ltd), among others, are suspected of having been misused for "pump and dump" transactions
Typical signs are "insider tips" shared en masse via WhatsApp or Telegram, overly positive messages about unknown companies and requests to invest quickly
Yes, under certain circumstances, injured parties can assert claims for damages - e.g. against banks, platforms or intermediaries. A quick legal examination is crucial here.
Save all evidence (chats, transfer receipts, emails), do not make any further payments and contact a specialist lawyer for banking and capital market law immediately.
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