The penny stock scam involves convincing people that a particular share is worth investing in, and in effect inflating the price on the stock market.
It’s a scam and you shouldn’t be taking financial advice from random strangers on the internet.
In the past I’ve written about mp3s being used to send this scam. Now scammers have created videos to spread their (false) messages. The videos (usually 30 or 60 seconds long) appear highly professional in quality, and come attached to an email.
- This scam is also called a pump-and-dump scam
- These emails have been found to begin with the words "Jump on the wave" or "Take a look at this 60 second video to start"
- Other forms of this scam use synthesised speech, PDF documents and Excel spreadsheets to promote their stock.
- In September last year some individuals pleaded guilty to this type of scam, they had made over US$20 million from it.