The phrase “ramp-and-dump” is certainly unfamiliar to you. However, the FBI has taken notice of the words and warned the public about the most recent scam that targets users of messaging apps and social media.
How does the scheme work?
This is how the ramp-and-dump plan operates:
Through internet channels, including social media advertisements or messaging, scammers—usually from abroad—target American investors and persuade them to join an investing club. Although the club is marketed as consisting of other investors, it is actually made up of bots or phony accounts. Targets may be directed to a secure chat app where the gang works by the criminals, who may pose as reputable brokerage houses or well-known market experts.
Targets are unaware that the scammers have a lot of cheap stocks under their control and encourage members to buy shares, which raises the price—this is known as the ramp-up phase.
The perpetrators sell off or dump their shares at a profit once the price is fraudulently raised, leaving the unwary investors with large losses when the value plummets.
The FBI reported that victim complaints from ramp-and-dump operations had increased by 300% so far in 2025.
Protect yourself from the scam
The following advice is provided by the FBI to help you avoid ramp-and-dump schemes:
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Beware of unsolicited investment tips received via accidental text messages or social media advertisements that link to online investment clubs, often hosted on secure messaging apps.
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Double-check claims that purport to be from well-known financial advisors or wealth managers offering exclusive stock recommendations through online clubs;
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A sure sign of a scam is pressure to act quickly based on a supposed market-moving event such as a company breakthrough, new technology, or government approval.
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The scam often includes urgent pitches to purchase low-priced stocks in new or emerging companies, often paired with promises of dramatic price increases or guarantees to cover any investor losses.
Consider it a warning sign if someone asks for your personal information, access to your bank accounts, or other advantages in return for your information or account opening. The FBI cautioned that your information may be used to open an account that another party could use for manipulative purposes.
