France's Autorité des marchés financiers (AMF) issued a public warning after receiving reports from retail investors about “hot” stock investment tips circulated in private messaging groups that display the hallmarks of a pump and dump scheme (known in France as “la bouilloire”). The alleged aim is to coordinate mass purchases to inflate share prices and allow fraudsters to realise gains at investors’ expense. Investor reports describe being drawn in through online or social media advertising and directed to private messaging groups such as WhatsApp, or being added to such groups without requesting access. Participants were encouraged to buy shares, often US stocks, with promises of large gains within a few days; after an initial rise, the shares later collapsed and investors reported losing most of their investment. The AMF notes that those promoting the trades typically lack authorisation to recommend investments in France and may conceal that they hold significant positions or act on behalf of another party, selling into the price increase before the sharp fall. The AMF urges investors to ignore advice from unknown individuals in private messaging groups, recognise that scammers often use private channels, verify that any person or firm offering investment services is authorised to operate in France using the AMF’s website (including its white and black lists), and remain sceptical of promises of fast and easy profits.

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