Sweden's Financial Supervisory Authority (FI) issued a consumer warning on investment tips circulated in chat groups after an increase in calls from people who were induced to buy shares that later fell sharply in price, consistent with pump-and-dump market manipulation. In this approach, perpetrators spread false or misleading information to drive up a share price and then sell their holdings for a large profit, often using social media groups to build trust and sometimes leveraging well-known names from the finance industry to attract participants. FI noted that the targeted shares are often foreign and traded on overseas exchanges, urged consumers to be vigilant and sceptical of unsolicited stock tips and promises of quick gains, and called on Swedish financial market firms such as online brokers to warn customers and do what they can to protect them from fraud.
Finansinspektionen 2025-08-22
Sweden's Financial Supervisory Authority warns against pump-and-dump stock tips spread via chat groups
Sweden's Financial Supervisory Authority (FI) warned about investment tips in chat groups linked to pump-and-dump schemes, using misleading information to inflate share prices before selling for profit. FI noted the use of social media and well-known finance names to attract participants, often involving foreign shares on overseas exchanges. Consumers are urged to be cautious of unsolicited stock tips, and Swedish financial firms are advised to protect customers from such fraud.