Pump-and-Dump 'Signal Group' Scam
A group promises hot 'signals' or coordinated buys to spike a coin or stock — organizers sell at the top and members are left holding losses.
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What this scam is
You are invited to a Telegram/Discord 'signal' or 'pump' group that claims insider tips or coordinated buying to send a coin or micro-cap stock soaring. In reality, the organizers already hold the asset; when members pile in and the price spikes, the organizers sell ('dump'), the price crashes, and members lose. Some also charge membership fees or push you to a fake exchange. It is market manipulation with you as the exit liquidity.
What it usually looks like
- A group promising guaranteed 'signals' or a coordinated pump.
- Screenshots of past 'wins.'
- Countdowns to a scheduled 'pump.'
- Membership fees or a specific exchange to use.
Common warning signs
- Promises of guaranteed or coordinated gains.
- Pressure to buy a specific low-volume asset fast.
- Paid 'VIP signal' tiers.
- Pushed toward an unfamiliar exchange.
Example wording scammers use
“🚀 Next pump at 8PM EST! VIP members get the coin 2 minutes early — join for guaranteed profit.”
“Our signals are 95% accurate. Deposit and follow our calls to 10x.”
These are illustrative examples written by ScamSplain, not real messages.
What the scammers want
- You to buy so they can sell into your money.
- Membership/signal fees.
- Deposits on a controlled exchange.
What to do
- Avoid 'signal' and 'pump' groups; they exist to make you the exit liquidity.
- Distrust guaranteed returns and coordinated buys.
- Do not deposit on exchanges a group tells you to use.
- Leave and report.
What to do if you already responded
- Stop following the calls; do not add funds.
- Preserve records; report to the SEC/CFTC and reportfraud.ftc.gov.
- Withdraw remaining funds to a wallet/exchange you control.