<img height="1" width="1" style="display:none;" alt="" src="https://px.ads.linkedin.com/collect/?pid=4052188&amp;fmt=gif">
credit union scam

The SEC issued a warning to credit unions today about a fast increase in emails using a spamming technique called “pump and dump.”

Pump and dump scams are meant to inflate stock prices by increasing demand for a stock. They often claim to have inside information about a company or claim to use a surefire way of picking good stocks.

The goal of the scam is to pump up a stock’s price so that the fraudsters can sell the shares they bought for a lower price for a profit. After the fraudsters sell their shares, investors lose their money or are stuck with nearly worthless stock, according to the SEC.

These scams aren’t only popping up in people’s inboxes, they’re also prevalent on Facebook, Twitter, online bulletin boards and chat rooms, according to the SEC.

The SEC advises credit unions to be wary of any unsolicited investment advice and encourages credit unions to delete any emails they suspect are part of a pump and dump scheme.

digital signatures for credit unions free ebook

You may also like

Former Credit Union Manager Admits to Stealing $60k From Vault
Former Credit Union Manager Admits to Stealing $60k From Vault
9 August, 2013

The former manager and treasurer of LEBCO Educators Federal Credit Union in Pennsylvania faces up to 10 years behind bar...

Texas CUs: Join us for a free Lunch 'n Learn about digital signatures
Texas CUs: Join us for a free Lunch 'n Learn about digital signatures
20 February, 2013

We'd like to invite Texas credit unions to join SIGNiX's Rich Heller for a complimentary Lunch 'n Learn educational sess...

Joe Montana to speak to credit unions at NACUSO conference
8 March, 2013

Famous NFL quarterback Joe Montana will be the keynote speaker for the NACUSO annual conference on April 17 in Las Vegas...