"Invest to identify risks and protect millions of households"

---2022 World Investor Week promotion

World Investor Week is a global event organized by the International Organization of Securities Commissions (IOSCO), aimed at enhancing market awareness of the importance of investor education and protection, and showcasing good practices of securities regulatory agencies worldwide on investor education and protection. The theme of the 2022 World Investor Week (October 8-14) is "Investing to Identify Risks and Safeguard Millions of Families.".

With the rapid development of information technology and the wide application of the Internet, the traditional "black mouth" has further evolved into a new illegal form. The network fraud cases, mainly "pig killing dish", are more frequent. The fourth quarter of each year is especially the high incidence period of cases. Lawbreakers often use new Internet technology to illegally carry out activities such as OTC capital allocation, stock recommendation, and "pig killing dish", to induce investors to buy stocks while waiting for opportunities to sell for profits. So how do criminals use various means to defraud investors, and how should investors identify such scams to protect their legitimate rights and interests? Taking "pig killing plate" as an example, we analyze common tricks in cases, propose prevention suggestions, and hope that investors will keep their eyes open, be vigilant, and beware of being deceived!

1、 What is a "pig killing plate"?

The so-called "pig killing plate" refers to illegal gangs using social media and other means to lure investors into buying stocks at a high price, while also selling related stocks in the opposite direction for illegal profits. Some even set up virtual accounts directly and carry out virtual transactions to sweep away the money invested by investors, seriously disrupting market order and infringing on investor rights.

2、 Common routines

In the routine of pig killing: the manipulation gang used the capital and shareholding advantages in advance to continuously buy and sell the designated stocks, affecting the trading price and volume of the stocks. Then the "black mouth" established a stock recommendation group and a stock recommendation official account with the help of Internet social media, and hired the network "big V" to publicize it, attract investors, and vigorously encourage retail investors to "follow" to buy, inducing victims to be willing to invest real money and silver in the "insider stocks" they recommended, and then quickly ship and make profits in the short term.

The first step is to find the target (attract fans)

With the help of new Internet technologies such as mobile phone live broadcast, "Black Mouth" uses online We Media live broadcast platform, WeChat stock recommendation group, stock recommendation official account and other ways to give priority to stock comments and technical analysis, teach stock market trends and stock speculation tips, so that shareholders believe that they are "professional", attract investors' attention, and even some criminal gangs will impersonate customer service personnel of securities companies to spread the net to find their target groups.

Step 2: Scam Trust (Circle Fans)

After attracting the attention of investors, scammers will actively attract people to join the group. In the communication group, there will be "professional teachers" and "insiders" constantly posting real-time stock market hot topics, recommending high-quality stocks with high recent popularity. Some even invite some so-called "big Vs" and "stock gods" to teach in the group. The content of the "teachers" lectures is also in their favor, only discussing technical analysis, not logic, nor the company's fundamentals. In the group, "trusts" will use methods such as "sharing orders" and "sharing profits" to send out information about the large returns of some pre recommended stocks, constantly promoting the "teachers" practical ability, creating an atmosphere, and subtly influencing it. Influential to the audience and tempting to investors, the "assistant" often interacts and chats with investors, making you trust them. Some scammers even show great care for you, deepening your trust in them.

Step 3: Inducing Investment (Killing Pigs)

At that time, the timing was mature, and live streaming rooms, WeChat groups, and other platforms would simultaneously recommend stocks and require investors to follow instructions, "buy together", "listen to instructions uniformly", "get rich together", "buy all positions at XX time point". "Professional teachers", "insiders", and "assistants" would continuously send messages to investors through WeChat groups or mobile text messages, enticing them to buy all positions. Finally, investors accepted the stock at a high price, and the criminal gang successfully shipped the goods. When they tried to negotiate with the other party again, the fraudster had already disappeared without a trace. When the victim suddenly realized that they had been deceived, the money had already entered the fraudster's pocket.

3、 How investors can prevent the risk of "pig killing" in the stock market

To prevent the risk of "pig killing" in the stock market, it is necessary to be cautious and rational, and not blindly follow or believe. Don't be misled by the claims of "investment experts" and "insiders" who constantly strive for success, and don't blindly believe in the recommendations of so-called "big Vs", "stock gods", and "experts". Don't click on screenshots or links with unknown sources, and don't join investment groups full of strangers. Do not participate in induced investments that require "unified buying" or "everyone making money together".

(Disclaimer: The above content is for reference only and does not constitute specific operational suggestions. Any profit or loss shall be at one's own risk.)