Pump-and-Dump Scams
Coordinated hype that inflates a stock or token's price so insiders can sell at the top, crashing it.
Last reviewed: 1 June 2026
What this scam is
A pump-and-dump scheme artificially inflates the price of a low-value stock or crypto token through coordinated hype, then sells ('dumps') at the peak — leaving later buyers with rapid losses.
How it works
Organisers accumulate a cheap asset, then promote it heavily in chat groups, social media and 'signals' channels with urgency and FOMO. As followers buy and the price spikes, insiders sell. The price collapses and most participants lose money.
Common red flags
- Coordinated urgency to 'buy now' before a spike
- Promises of guaranteed, fast gains
- Anonymous organisers and paid promotion
- Obscure, low-liquidity token or penny stock
Sanitized example messages
Illustrative, sanitized examples. Personal details are replaced with placeholders such as [phone number] and [fake link].
🚀 BUY [token] NOW — target 10x in 24h! Don't miss the pump at [time].
Payment methods used
- Crypto/stock purchases
Who is usually targeted
- Retail traders
- Crypto newcomers
- FOMO-driven investors
What to do immediately
- Do not buy into coordinated 'pump' calls
- If you bought, decide based on facts, not the group's hype
- Report manipulation to the relevant regulator/exchange
Evidence to preserve
- Group messages and timestamps
- Promoter identities
- Trade records
Where to report it
- Action Fraud (UK) — UK national fraud & cybercrime reporting centre
- FTC ReportFraud (US) — US Federal Trade Commission fraud reports
- FBI IC3 (US) — US Internet Crime Complaint Center
- Scamwatch (Australia) — Australian competition & consumer reporting
Always verify reporting routes and emergency contacts on the official government or agency website for your country.
Frequently asked questions
Is joining a 'pump group' illegal?
Market manipulation is illegal in many jurisdictions, and participants typically lose money anyway because insiders sell first. Treat coordinated pump calls as a scam, not an opportunity.