High riskSocial Media Scams

Pump and Dump Group Scam

In this scam, a social media or chat group coordinates to hype a low-value stock or crypto coin, driving up the price, then organisers sell at the top and the price collapses, leaving followers with losses.

Quick verdict

Risk level
High risk
Scam type
Market manipulation (social groups)
Main red flag
A group urging everyone to buy a specific coin or stock now for a guaranteed surge.
What to do first
Do not buy on group hype; treat coordinated 'buy now' calls as manipulation.

What this scam usually looks like

In this scam, a social media or chat group coordinates to hype a low-value stock or crypto coin, driving up the price, then organisers sell at the top and the price collapses, leaving followers with losses.

Example message pattern

Example pattern — not a real report
Example pattern: 'Everyone buy this coin at 3pm! Guaranteed to moon, don't miss out, tell your friends!'

This is a fictional, anonymised example used to illustrate the pattern. It is not a verified real message, and any names are used only to show how the scam typically reads.

Red flags to watch for

  • Coordinated 'buy now' calls for a specific asset
  • Promises of a guaranteed surge
  • Pressure to act at a set time and recruit others
  • Hype around an obscure stock or coin
  • Organisers who profit as you buy

What to do

  • Avoid buying on group hype or coordinated calls
  • Be sceptical of guaranteed surges
  • Research investments independently and get regulated advice
  • Report manipulative groups to your regulator

If you already clicked or replied

  • If you bought in, avoid throwing in more to 'average down'
  • Be aware the price may collapse after the pump
  • Keep records and report the group to your regulator
  • Be wary of recovery scams that follow

What not to do

  • Do not buy on coordinated hype
  • Do not trust guaranteed-surge promises
  • Do not recruit others into the pump

Similar scams

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Boiler Room Stock Scam

In this scam, high-pressure salespeople cold-call or email you to buy shares, often in obscure or worthless companies, using urgency and false promises, then make it impossible to sell or disappear with your money.
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Telegram Investment Group Scam

Telegram and WhatsApp investment groups present a charismatic trading mentor, screenshots of huge profits and a stream of members claiming they cashed out big. Behind the scenes the testimonials are often fake accounts, and the group exists to coordinate buys that pump a token before insiders sell, or to funnel members onto a fake trading platform. Most ordinary members end up losing money. Real regulated investing does not work through hyped group chats and signals.
High risk Crypto & Investment

Crypto Investment Scam

This scam promises high or guaranteed crypto returns through a fake platform, shows paper profits to encourage bigger deposits, then blocks withdrawals.

Frequently asked questions

What is a pump and dump?
A group hypes an asset to inflate its price, then organisers sell at the top. The price collapses, leaving later buyers with losses. It is market manipulation.
Aren't these groups just sharing tips?
Coordinated 'buy now' calls promising guaranteed surges are manipulation, not genuine tips. Organisers profit while followers lose.
I bought in. What now?
Avoid adding more, expect a possible collapse, keep records, report the group to your regulator, and beware of recovery scams.
How do I invest more safely?
Research independently, get regulated advice, and avoid acting on hype or coordinated group calls.

Last reviewed: June 2026

Disclaimer: This page provides educational information only to help you recognise common scam patterns. It is not legal, financial, cybersecurity, or law enforcement advice, and it does not confirm whether any specific message, company, or person is genuine or fraudulent. When in doubt, contact the official organisation directly and report concerns to your local authorities.