The Canadian Securities Administrators (CSA) issued an urgent warning to investors regarding a surge in “ramp-and-dump” stock scams. Orchestrated through fraudulent investment groups on social media and encrypted private messaging apps like WhatsApp, Discord, and Telegram, these schemes actively target unsuspecting individuals.
A modern variation of the classic “pump-and-dump,” a ramp-and-dump scheme involves bad actors taking control of low-priced, thinly traded, or foreign-based stocks with limited public float. Scammers build trust with victims on platforms like Facebook and Instagram—sometimes via fake friendships or romance—before steering them into private chat groups.
Inside these groups, fraudsters impersonate well-known financial professionals, celebrities, or industry leaders. They use high-pressure tactics and claim to possess “inside information” to artificially inflate stock prices. Once victims buy into the hype and drive the price up, the scammers quickly sell off their shares for a profit. The stock price immediately crashes, leaving ordinary investors with massive losses before the chat groups abruptly vanish.
To protect themselves, the CSA advises the public to reject unsolicited investment advice and verify credentials using the National Registration Search.
Suspicious activities should be reported immediately to local provincial securities regulators or the Canadian Anti-Fraud Centre.