New Delhi, March 13 -- Indian investors have been falling prey to pump-and-dump scams increasingly in recent times through digital platforms such as: WhatsApp, telegram, text messages, gmail etc. These scams are followed by false promises of huge returns in a short period of time and lure innocent retail investors into financial losses.

The basic idea behind all these scams is to lure innocent traders and investors based on their greed by ensuring them dream like scenarios of easy high returns and seamless long-term prosperity with minimal to no efforts. Five important points that will prevent you from becoming a victim of these scams are discussed below:

Pump-and-dump scams generally consist of artificially driving the price of a stock...