Top 11 E-Mail Scams
Scam #2: Investment Pump & Dump
Everyone wants to be in on the ground floor when it comes to investing, so it's no surprise that millions of people go for this one: You receive an e-mail from someone claiming to be a power broker containing a hot tip on a penny stock that promises to double, even triple, in short time. So you go for it, only to see it tumble within hours. One such e-mail we received just this week looks like this:
Subject: Your 221.43% - breaking results
DarkLord: DWPI Hits The Street, Price Climbs 221.43%
Distributed Power Inc.
Symbol: DPWI Price: $0.40 (+0.31)
News hits the streets!!! DPWI acquires huge oil reserves, drills deeper on current wells increasing production, and now opens Asian division. Investors go nuts today and price rockets 221.43%. Act fast, read the news and get on DPWI first thing Tuesday!
Turns out the people who send you the e-mail in the first place are waiting for a few people like you to get the stock up so they can get out before you even have a chance.
What You Can Do
Carol McKay, of the National Consumers League, says: "Legitimate investments are risky, and legitimate brokers will admit that to customers. Be especially wary of offers that arrive via e-mail, offshore investments or commodities, and high-pressure sales tactics. And, if you can't afford to lose all your money, don't invest any of it."