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How Adam Managed to Recover His Money From a Threatening Pump & Dump Scam

Spammers are back, this time capitalizing on recent financial market fluctuations. “Pump-and-dump stock” scams have grown in popularity among hackers looking to profit from artificially overvalued penny stocks. 

These email scams are pumped by their owners in order to inflate the stock price as much as possible. This is done so that they can be dumped before their value drops to the original value. The criminals try to persuade the victim that the penny stock is worth more than it is, or that it will soon skyrocket, by using false information.

Cryptocurrency

When they work, these scams can artificially raise the price of the stock in which the scammers intend to sell their shares. This puts an end to the spam campaign and returns the stock to its original price. The majority of “pump-and-dump” stock email scams have targeted North American users. They can be identified by the random line breaks and spaces between words and sentences, as well as the poorly translated text within the email or subject lines.

While it’s difficult to understand a cyber criminal’s mind, one thing is certain: these bad guys will continue to use current events to steal confidential information for profit.

In 2021, we witnessed a 50% year-over-year increase in crypto-related scams to over 500,000. And looking ahead we anticipate a more than 75% increase in 2021!

FTC Gov. Report 2021

If you are someone who’s interested in Cryptocurrency, then you’re definitely at the right place. We can give you the best practices in identifying red flags as well as help you in recovering your stolen money from scammers!

Table of Contents

Pump & Dump Scams That Adam Witnessed

Crpytocurrency

A pump-and-dump scheme is one in which an individual or group artificially inflates the price of an asset in order to successfully liquidate their own holdings. “Pump” is the first step. 

Crypto fraudsters use social media and forums, including online communities, to spread false or misleading information in order to entice people to invest in scarcely traded coins. These blogs frequently include exaggerated due diligence (or “DD”) and forecast an increase. Emojis that look like space rockets and moons, as well as outstretched palms, will be used to indicate that an investment is about to take off and that investors should buy and hold.

Then there’s the landfill. As the price rises due to increased momentum, other investors join in, propelling the price higher while the schemers cash out and profit quickly. When investors realize the hype is false, they rush to limit their losses, causing the coin’s value to plummet. It all comes down to trustworthiness when it comes to identifying a pump-and-dump scheme. When tracking bitcoin movements on social media platforms like Reddit and Twitter, look for anonymous accounts with little or no posting history – or a history of bogus pumping. These are almost certainly con artists.

Stolen Wealth

Market manipulation fraud, also known as “pump and dump,” generates artificial buying demand for a specific instrument, usually a low-trading-volume issuer in the over-the-counter securities market, which is largely controlled by the fraudsters. This artificially increased trading volume has the effect of artificially raising the price of the targeted asset (the “pump”), which is quickly sold off by the fraudsters into the inflated market for the security (the “dump”). As a result, the criminals profit illegally while innocent third-party investors lose money. Increased trading volume is typically achieved by luring unsuspecting investors into purchasing shares of the targeted securities through fraudulent or false sales tactics and/or public information releases.

In a recent variant of this technique, foreign-based computer hackers gain unauthorized access to unsuspecting victims’ online brokerage accounts in the United States. These victim accounts are then used to make coordinated online purchases of the targeted security to effect the pump portion of the manipulation, while the fraudsters sell their pre-existing holdings in the targeted security into the inflated market to complete the dump.

  • Don’t believe the hoopla when it comes to market manipulation fraud. 
  • Determine where the stock is traded. 
  • Verify claims independently. 
  • Do your homework on the opportunity. 
  • High-pressure pitches should be avoided. 
  • Maintain skepticism at all times
keep trading

Adam’s Purchase of Shares Did Not Work Out for Him

Adam recently purchased shares in a publicly-traded company in the United States on the advice of an “expert.” He lost over a million dollars in just 48 hours.

Fraudsters would inflate the price of a company’s shares in such schemes by either spreading false positive news about the company or manipulating trading activity to induce others to buy the shares. Following the “dump,” the fraudsters sell their shares in the company while the share price rises, before ceasing all activities. The share price then falls precipitously, resulting in significant losses for the victims.

In Adam’s case, the price of the stock purchased by the seven victims fell by nearly 80% in two days, resulting in a total loss of US$1.07 million (S$1.46 million).

Scams about Crypto appear year-round. To prevent this kind of scam you can contact us for support!

virtual wallet

A brief glance at Adam’s life

Before we get into the details of this case, let’s look at Adam Mooro as a person. Adam Mooro, 26, worked as a mechanic in Poland, earning approximately $44,400 per year. 

He was always overworked and underappreciated. His goal was to make enough money by 45 to retire and spend the rest of his life relaxing, but in order to do so, he needed to earn some hard cash as soon as possible. 

His friends advised him to start investing because he could potentially earn $100 in an hour simply by sitting idle. He began researching investing and came across a forex investing website one day. He contacted the broker through this website, who provided him with all of the information he needed while assuring him that the training portal was as secure as it could be. The broker led Frank to believe that trading with the broker could be profitable with high returns. As a result, Frank made the decision to begin investing.

bitcoins and 100 dollar

Adam connected with the fraudsters on Whatsapp & WeChat

Adam, who fell victim to the pump and dump scam, met the con artists online, via social media or instant messaging platforms like WhatsApp and WeChat. 

The victim was persuaded to buy shares on the Hong Kong or New York stock exchanges. Adam was duped into purchasing shares in two ways by the con artists. In the first method, an attractive woman’s photo was used as a social media profile picture to entice him into one-on-one conversations. After establishing trust, the fraudsters claim to have insider information on certain overseas listed companies and encourage the victim to purchase such shares, promising quick profits.

The second method involves fraudsters creating chat groups on instant messaging platforms and inviting multiple victims to join. They first offered stock recommendations that proved to be correct, identifying themselves as investment gurus or share trading experts. Once trust was established, the fraudsters ‘revealed’ to their victims the name of a ‘high quality’ company whose share price is expected to skyrocket in the near future. Once the company’s name was revealed, the fraudsters encouraged all victims in the chat group to buy the shares right away. In both cases, the scammers requested that the victims send a screenshot of their trading account transactions as proof of purchase.

men holding bitcoin

With The Help of The Claimers, Adam Got To Know About Authentic Asset Recovery Firms

Adam had no choice but to look into The Claimers, and everything he discovered screamed legitimacy and dependability. 

Because he didn’t want to be taken advantage of again, he decided to contact them and explain his situation. With their customer service, they were very professional and solution-oriented, and they took the time to walk him through the entire process. Adam decided to give them a try after speaking with previous clients and reading various success stories. It ended up being the best decision he’d ever made.

They recognized that the Pump & Dump scam was a time-sensitive issue, and that the sooner they began investigating it, the sooner his money would be returned. According to statistics, if the fraud is reported within two days of the incident, the scammer is caught 87 percent of the time. Adam, on the other hand, was unlucky, but The Claimers assured him that his money would be refunded.

Following the case review, a member of their team contacted her to further discuss her situation and provide advice tailored to his specific circumstances. Evidence was critical in swaying the case in his favor, just as it was in any other criminal case, so they began gathering evidence and interviewing brokers right away. Adam’s team followed his lead back to the Judge, grabbing any and all relevant proof documents. 

crypto coins

The investigation includes calls, messages, emails, screenshots, billings, and the entire digital footprint. Adam is currently working with digital experts to recover all relevant evidence in order to build the strongest possible case. They kept him informed throughout the process, giving him confidence that The Claimers were working hard on his behalf. The team members began working on his case’s paperwork. To avoid rejection by the financial institutions involved, the data was formatted in an efficient, effective, and viable manner.

This is the final stage of the rehabilitation procedure. At this point, their recovery specialists devised a one-of-a-kind strategy for completing the recovery; they considered personally approaching the local police, delivering the proof, or enlisting the help of a third party. They went with the first option and contacted the owners of fraudulent websites. At first, they pretended to be surprised that anyone would question this, but after being approached by a group of specialists who threatened legal action, they caved and handed over half the money. This did not prevent The Claimer’s experts from devising a backup strategy that included contacting financial institutions. 

They’ve partnered with payment processors such as Transferwise, Paypal, and others to help us recover your funds. Finally, they contacted banking institutions, which agreed to assist because of the undeniable evidence provided by The Claimers, and they issued an official notice to the bogus organization.

crypto coin on spoon

The Truth Was Finally Uncovered

Investigators discovered that this criminal organization began the scam by requesting a small payment, ranging from $250 to $300 USD. Binary options, cryptocurrencies, US stocks, and foreign currencies were all promoted as investment opportunities. 

Once the initial payment was made, the (fake) brokers, who were actually employed in contact centers primarily in Eastern Europe, came into play. They communicated with victims in their native language in order to gain their trust. The script then instructed them to generate significant initial gains through deceptive online simulations that were clearly built on the fly. Clients were persuaded to make larger investments over the phone by brokers who appeared to be specially trained, believing they were receiving a positive return.

Unfortunately, no investments were made, and the money was simply distributed among the con artists. “The deposited funds are never used for capital investments,” according to the Public Prosecutor General of Bamberg. “The trading platform available to the customer, as well as the ostensible customer account, are both pure deception.” Investigators believe that a large number of incidents go unreported because some of those involved may be unaware that they have been duped. Many investors believe they lost their money in an “honest” way, as a direct result of a risky transaction, because this is (so-called) financial product trading. 

The Claimers is here to help you recover your money and get your life back. We also have guides and news alerts that can aid you.

Key Takeaways!

Adam’s finances stabilized after months of turmoil, and he was able to pay his bills on time thanks to The Claimers. He understands that if it hadn’t been for them, he would have been unable to repay the debt and would have gone bankrupt. 

He continues to encourage others to speak out against pump and dump scams, and he hopes that if they become a victim, they will not be embarrassed to contact reputable fund recovery services like The Claimers to recover their funds quickly and effectively. 

Always remember the investment adage, “If it sounds too good to be true, it probably is.” Stop and consider why someone you don’t know would be so willing to give you such information if they give you a stock tip. It is unrealistic to expect a large and immediate return on your investment. It is also critical that you conduct your own research before making any investment. This should assist you in avoiding such pump-and-dump schemes.

do you need help?

A lot of those who contact us have questions and concerns about their personal and business data being compromised. We aim to arm you with the legal and technical know-how in the fight against scams. Also, we will be able to refer you to top scam recovery agencies.

Please fill up the form. Rest assured that our support team will get in touch with you

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