At least 21 cases of so-called pump-and-dump stock market scams involving overseas-listed companies have been reported in Singapore since 1 July 2026.
Police issued a warning on 5 September after noticing a resurgence of the scam, which they had previously warned about in 2021.
In a separate case reported by The Straits Times, a Singaporean couple in their 40s are sitting on paper losses of more than S$500,000 after putting about S$650,000 into shares of a Hong Kong-listed company.
How Pump-and-Dump Scams Work
Unlike some investment scams involving fake apps or websites, victims of pump-and-dump schemes may actually be buying genuine shares listed on legitimate stock exchanges.
Scammers typically approach victims through social media or messaging platforms such as WhatsApp. They may present themselves as experienced investors, trading mentors or people with special market knowledge.
Victims can be added to chat groups where stock tips and investment lessons are shared. Some recommendations may initially perform well, helping the scammers build credibility.
Once trust has been established, victims are encouraged to put larger amounts into a supposedly promising company listed in markets such as Hong Kong or the United States.
The increased buying can help push the share price higher. Those behind the scheme can then sell their own holdings at the higher price, after which the stock may fall sharply.
Police said scammers may also use other people in the chat groups to contact victims privately and give them further instructions.
Victims can be asked to send screenshots showing that they have bought the recommended shares.
In one recent case highlighted by police, five victims bought a combined 1.037 million shares in a Hong Kong-listed company. The share price fell by almost 75 per cent within a week, leaving them with combined losses of more than HK$4.6 million, or about S$744,000.
Couple Put About S$650,000 Into Hong Kong-Listed Stock
The Singaporean couple's experience was detailed separately by The Straits Times.
According to documents reviewed by ST, the homemaker and sports coach invested around S$100,000 of their savings and S$550,000 mainly from bank loans.
The wife had responded to a Facebook post in May offering a free five-month programme to learn and practise stock trading.
She was subsequently added to a WhatsApp group, where a person claiming to be an investment professor regularly conducted lessons and gave stock recommendations. Another person acted as his assistant.
The wife initially observed without investing. She later followed a recommendation to buy shares in Hong Kong-listed CMBC Capital Holdings with S$40,000 and made a profit of about 20 per cent after selling as instructed.
ST reported that the couple later committed much more money after the same purported expert promoted CMBC Capital again and presented it as a major investment opportunity.
They bought shares at just under HK$5 each over several days in July.
When the share price began falling, the people running the chat allegedly continued telling participants to hold their positions. On 2 August, the couple were removed from the group and could no longer contact the two people.
The couple made a police report that day. Police told ST they were looking into the matter.
CMBC Capital itself said on 25 August that it had received reports of suspected investment scams involving the misuse of its name or claims of links to the company.
The company said the suspected activities were not connected to it and that it had not authorised anyone to solicit investments in its shares on its behalf. It said the matter had been reported to Hong Kong police and relevant regulators.
Police Warn Against Urgent Stock Tips
Police advised investors to be cautious about stock recommendations from people they have met only online.
They also warned about high-pressure messages telling people they must buy immediately or risk missing a rare opportunity.
Extra caution should be taken with overseas-listed shares that have low trading liquidity or a small market capitalisation, as such stocks can be more vulnerable to manipulation.
Police stressed that no trading strategy can guarantee a profit.
This is not the first investment scam warning involving online learning groups this year. On 4 June, police said at least 48 cases involving chat groups offering supposed free investment lessons had been reported since May, with victims losing at least S$3.6 million.
That June warning involved a different scam variant where victims were directed to fraudulent investment websites or apps and asked to transfer money to specified accounts.
