Trading Stocks – The Latest Bold Stock Trading Scams
has recently revealed that some so-called smart individuals have tricked quite a few other individuals in stock fraud. This is a high-tech operation involving hackers, the affected people apparently do not know what happened for some time. At least 60 people, probably more, were victimized, their brokerage accounts were broken, and their funds were being used to trade offenders
Hacker Group Leader, a 35-year-old man from India. He was sentenced to two years' imprisonment by a US judge to begin the program. He pleaded guilty and agreed to pay compensation and cooperation.
Do not know how this hoax is going on, but here is a possible scenario
1. Suppose Joe Doe has an account at Ameritrade or other online broker
2. Suppose the hacker gets Joe Doe's account information and the same information for the other 59 people, just like him.
3. Suppose that hackers use their own funds to buy 100,000 ABCs for 2 cents per share, which will cost only $ 2,000 plus commissions and could push the stock at 4 cents a share and warn many pennies The stock seekers have stock actions. They can now join the perpetrators and unwittingly inflate the price of the stock, or even more, for example, 5 cents per share.
4. Suppose that hackers use each of their 60 infiltrated accounts to buy 5,000 shares, now 5 cents per share. The owner of the hacked account is less likely to notice this because it's just a $ 250 deal and it can not be flagged as unusual.
5. Assuming this sudden co – ordination of buying 30 million shares at 5 cents per share, the price per share rose to 10 cents per share, probably because other people took the stock at this point
. Suppose hackers sell their original 100,000 shares, 2 cents per share, 10 cents per share. Please note that as a result of this operation, they will receive an initial investment of $ 10,000 minus $ 2,000 minus the less important commissions, probably just a few hundred dollars, mostly from the compromised account.
7. Now, since many stocks will be sold and there is really no underlying reason for this hypothetical stock price rise, its price may drop back to 2-3 cents per share
. The entire operation can be repeated until the owner of the account by the hacker finally figured out what went wrong here.
But by then they may have lost one or two. Eventually, hackers are usually caught sooner or later, greed resulting in the collapse of such operations. If these hackers stop after one or two pumps and dumping plans, they may escape long-term justice. Maybe … Fortunately, this is not the case