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You may have lost money in your investment portfolio,
due to mismanagement and not even know it.

Investors should beware of stock tips via text message

Indeed, August was a tough month for most investors to live through. The instability in foreign markets carried over to America’s markets, and stocks suffered throughout the month. In this climate, unscrupulous traders look at panicking investors as prime targets for investment scams.

In fact, a recent FINRA report sought to advise investors about the latest pump-and-dump scheme. In true form with the use of advertising through social media, the latest scheme is being communicated to investors through the messaging app, WhatsApp. Similar to Google’s Hangouts and Skype, WhatsApp allows users to send text messages and share photos and information.

Through WhatsApp, scammers touted the viability of Avra Inc. (OTC: AVRN), a microcap stock that was destined to “double in the next few weeks.” What made the message so enticing was that it appeared to be sent from individuals from prominent brokerage firms. This caused investors to trust and believe in the message. Unfortunately, the statements were not true, and were only a part of a “pump  and dump” scheme.

This is where scammers cause wild interest, which pumps up the stock, then they sell the stock en masse when it reaches its peak, essentially dumping the stock, causing unwitting investors to lose all of their money.

Because of this, we also warn investors that if they receive “hot” stock tips via social media or text message from people they do not know personally, chances are that the tip is actually a scam. The old adage “if it is too good to be true, it probably is” applies here. 

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