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The Police would like to alert members of the public to a resurgence^[1] in “pump and dump” scams involving overseas-listed companies. Since 1 July 2026, at least 21 cases have been reported.

A “pump and dump” scam is a form of stock market manipulation in which fraudsters promote selected shares using false or misleading claims or by creating an appearance of strong market interest. This stage, commonly referred to as the "pump" phase, seeks to drive up demand for those shares and their prices. As unsuspecting investors buy the shares, the fraudsters sell off their holdings at the inflated price, an act known as the "dump" phase. Once these fraudsters exit the market, the artificial support disappears and the share price typically collapses rapidly, leaving unwitting investors with substantial financial losses.

The diagram below shows the typical progression of a suspected “pump and dump” scam

Based on reports received by the Police, most victims were approached by fraudsters through social media or messaging platforms such as Facebook and WhatsApp. These fraudsters created chat groups on these platforms, sometimes using Singapore-registered phone numbers, and touted themselves as experienced investors or trading mentors offering investment insights or guidance, sometimes for a fee.

To build trust, these fraudsters may first recommend shares that performed well or generated profits for the victims. Once trust was established, they would introduce a supposedly "high-potential" company listed on either Hong Kong or U.S. stock exchanges, and claimed that its share price was expected to rise sharply in the near future. Group members were then strongly urged to purchase the shares immediately after the company’s identity was disclosed.

Fraudsters may also plant accomplices in the chat groups, posing as administrators or assistants to contact victims privately and provide additional instructions, reinforce the investment narrative, and maintain pressure on participants. Victims may also be instructed to provide updates via private chats once purchases were made or submit proof of their trades. It is believed that these accomplices were rewarded based on the number of victims who invested, and hence required proof for reward claims.

In some cases, the fraudsters promised to reimburse any trading losses incurred. However, when victims subsequently suffered losses and sought compensation, the fraudsters either became uncontactable or gave excuses for not honouring their earlier promises.

As an illustration, in one reported case, five victims collectively bought 1,037,000 shares in a Hong Kong listed company on the recommendation of an “expert”. Within a week, the share price fell by almost 75%, resulting in combined losses exceeding HKD4.6 million.

The Police would like to remind members of the public to be vigilant and keep the following in mind: 

1. Be cautious of stock tips provided online, or by individuals you have not met personally. No investment or trading strategy can guarantee profits. 
   
   
2. Be alert to high-pressure tactics such as “buy now”, stressing that if you do not act immediately, you will never get another chance. Such urgency is a tactic designed to discourage proper verification and due diligence. 
   
   
3. Be particularly sceptical of overseas-listed shares with low liquidity and small market capitalisation, as such shares may be more susceptible to price manipulation. 

Members of the public are also strongly advised to adopt the following precautionary measures:

1. ADD – the ScamShield app and set security features (e.g. activate the privacy function on WhatsApp which disallows unknown users from adding you into group chats. To do so, go to Settings > Privacy > Groups and select the privacy options “My contacts” or “My contacts except…”).
   
   
2. CHECK – for scam signs with official sources or websites. You can check the legitimacy of suspicious messages, phone numbers and website links via the ScamShield app or visit the ScamShield website at www.scamshield.gov.sg. Always conduct your own due diligence before investing.
   
   
3. TELL – authorities, family, and friends about scams. Report any information on such scams to the Police via the Police Hotline 1800-255-0000 or online at www.police.gov.sg/iwitness.
   
   

If you are in doubt, call the 24/7 ScamShield Helpline at 1799 to check. For more information on scams, members of the public can visit www.scamshield.gov.sg. Fighting scams is a community effort. Together, we can ACT against “pump and dump” scams and safeguard our community.

Screenshots Relating to “pump and dump” scams

Fraudsters created group chat, built trust and shared investment tips

Fraudsters revealed the “high-potential” company and requested screenshots of share purchases

Fraudsters gave excuses after the share price plunged and offered compensation