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Sep 27, 2005 -- Beware of text messages with stock tips

Clark talked about a scam a few months ago that involved a message on your answering machine, supposedly left for someone else. You were supposed to believe they just misdialed. The message was about a hot stock tip, and people thought they’d lucked into something huge. People would then find a stockbroker and buy stock on that company. But the company being touted had no idea. It was simply a “pump and dump” scam. Criminals create hype about a stock, people buy in, and the criminals dump the stock suddenly, making a killing. Now, it’s happening on cell phones. You receive a text message that looks like it was meant for someone else. It’s a stock tip and people run out and buy in. One company’s stock went up 200 points over night because people thought they were going to score big profits. What you need to know is you should never trade on “inside information.” It’s potentially illegal and almost always wrong. Secondly, never buy into a stock you know nothing about. Criminals are smart. They move from technology to technology and you are a target.

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