Investor Alert: Ramp-and-Dump Scams Surge as Fraudulent Investment Groups Target Investors

FCAA Saskatchewan published an investor alert referencing a CSA news release warning investors about ramp-and-dump scams conducted through fraudulent investment groups. The alert highlights a surge in this type of market manipulation and fraud targeting retail investors. The alert does not impose new compliance obligations on regulated entities but serves as an informational warning from securities regulators. Affected parties—investors and registrants—should be aware of the warning and monitor for related CSA guidance on fraud prevention.

For registrants and compliance professionals, this alert signals ongoing regulatory scrutiny of investment fraud schemes and reinforces the importance of monitoring for ramp-and-dump patterns in client accounts and communications. Firms may wish to review their surveillance controls for pump-and-dump or market manipulation indicators and ensure client education materials address these fraud typologies.