SFC cautions against ramp and dump schemes involving impersonation of stock commentators

The Securities and Futures Commission ("SFC") has alerted the public, as of February 11, 2026, to the increasing risk of investment scams involving fraudsters impersonating well-known stock commentators. These scams often target unsuspecting investors through social media and instant messaging apps, leading to significant financial losses.

Fraudsters commonly exploit small-cap or less liquid stocks, manipulating markets through ramp and dump schemes. By aggressively promoting these stocks and offering enticing investment tips, they artificially inflate prices. Once the prices reach their peak, the scammers quickly sell their holdings, resulting in substantial losses for investors who bought into the scheme.

The SFC has worked closely with law enforcement agencies to report and combat these scams. Fraudsters often use fake social media profiles and counterfeit documents to gain credibility. Some victims have also been lured into trading on fraudulent platforms, experiencing difficulties in withdrawing their assets.

In some cases, scammers have approached victims after they incurred losses, claiming they could arrange compensation upon additional deposits or handling fees. Once funds are transferred, the fraudsters disengage, leaving victims stranded. The SFC advises extreme caution against such offers, especially those that seem 'too good to be true'.

Investors are advised to exercise diligence when receiving unsolicited investment advice, particularly when 'online friends' request screenshots of trading records. They should use official company payment channels and verify recipients' identities through trusted sources, avoiding transfers to individual bank accounts. The SFC encourages investors to report any suspicious activity or impersonation to the SFC or Police immediately. Further information and known fraudulent activities can be found on the SFC’s Alert List and the Police’s Anti-Deception Coordination Centre.