| It's safe to say that anything that seems to be too | | | | indication of a scam. The text message may also |
| good to be true probably isn't, but that doesn't stop | | | | include a low priced stock (often fifty cents or less) |
| scam artists from trying out their ploys on | | | | that can be more easily targeted. These identifiers |
| unsuspecting cell phone users. Many more people are | | | | along with a pressure filled message and approach |
| finding unsolicited text messages on their phones, | | | | are almost definite signs of a scam on stocks. |
| offering stock tips that will make them rich, but are | | | | It's always smart not to take the advice of anyone |
| these messages really designed to help the phone | | | | that you have not requested information from. |
| user out? | | | | Unsolicited advice is something that can be misleading |
| While email messaging can be filtered with junk mail | | | | in an attempt to fraud the recipient of the message. |
| filters, text messaging isn't able to do so. Scam | | | | While it might seem simple enough to ignore the |
| artists are finding this mode of communication most | | | | message, a person can also report the source in |
| effective in getting their scam to someone who | | | | order to possibly stop the text messages to |
| might think that it's well-intentioned. Because the cell | | | | everyone else. These messages can be forwarded |
| phone user believes that their number can only be | | | | to the NASD via email. Other possible ways to block |
| used by those that they have sanctioned, they | | | | the transmission of such messages is via the |
| initially believe that the information is coming from a | | | | government's Do Not Call list. More than one number |
| truthful source. | | | | can be registered so long as the person has a |
| The scam is known as the 'pump and dump' whereby | | | | working email address. |
| the scam artist gives the victim misleading | | | | Some text messages may include options to opt out |
| information about a stock (this is the pump part). | | | | of further messages, so a person can also complete |
| When enough people have taken this information and | | | | those forms to be left out of the next round of |
| used it, the demand for the stock then goes up and | | | | stock tips. Other people find that avoiding chances to |
| thus so does the price. The scam artists will then sell | | | | opt into third party offers on websites that they |
| the shares that they purchased in this same | | | | have visited is a great way to cut back on the |
| company, lessening the price and leaving the victims | | | | unsolicited messages. Leaving a false phone number is |
| with worthless stocks. | | | | another way to avoid receiving these kinds of |
| A stock tip scam is easily identified when a person | | | | annoyances. |
| takes the time to use their common sense. If a | | | | There are laws that are in place to prohibit this kind |
| person should receive a tip about a stock that will | | | | of scam, but vigilance is the best defense as is using |
| rise in price and value significantly, that may be an | | | | common sense. |