The rise of meme-stock forums has created a new wave of investors who are eager to make quick profits by following the hype and buying into stocks that are heavily promoted by online communities. However, this also attracts the attention of scammers who prey on the gullibility and greed of these investors. Some of these scammers are so lazy that they don’t even bother to do any stock-picking or research, and instead use fake trading platforms and identities to lure their victims into sending them money.
The Case of “Doug Hogue”
One example of such a scammer is “Doug Hogue”, who claims to be a successful trader and offers his advice to meme-stock investors on Twitter Spaces calls. He promises to help them make huge returns by using his secret strategies and techniques. However, everything about “Doug Hogue” is a lie.
Forbes spoke to one investor who sent $5,000 to Spark Fusion, a fake trading platform that “Doug” recommended. He was told that he would be able to access his funds and profits after a few days, but he never heard from “Doug” again. He later realized that he had been scammed when he tried to contact Spark Fusion and found out that the website was no longer working.
The investor was not the only one who fell for “Doug’s” scheme. According to Forbes, there are dozens of other victims who have shared their stories on Reddit and Twitter, some of whom lost tens of thousands of dollars. They all received similar messages from “Doug”, who used different phone numbers and email addresses to communicate with them.
The Laziness of the Scammers
What is remarkable about this scam is how lazy and careless the scammers are. They don’t even try to hide their tracks or make their fake identities and platforms look convincing. For instance, “Doug Hogue” is not a real name, but a combination of two common surnames. A simple Google search would reveal that there is no such person as “Doug Hogue” who is a trader or has any online presence.
Similarly, Spark Fusion is not a legitimate trading platform, but a copycat of another scam website called Spark Global Limited. Both websites have the same design, layout, and content, with only minor changes in the names and logos. They also have fake testimonials, reviews, and awards that can be easily debunked.
Moreover, the scammers don’t even bother to do any stock-picking or research for their victims. They just tell them to send money to their fake platforms and wait for their profits to grow. They don’t provide any evidence or explanation of how they trade or what stocks they invest in. They just rely on the trust and ignorance of their victims, who are blinded by the prospect of making easy money.
The Dangers of Meme-Stock Investing
The scam of “Doug Hogue” and Spark Fusion is not an isolated case. There are many other similar scams that target meme-stock investors, who are often inexperienced and uninformed about the risks and realities of the stock market. These investors tend to follow the crowd and buy into stocks that are hyped up by online communities, without doing any due diligence or analysis.
This makes them vulnerable to manipulation and fraud by scammers who exploit their emotions and expectations. These scammers use various tactics to deceive their victims, such as impersonating celebrities, influencers, or experts; creating fake news, rumors, or endorsements; sending phishing emails or messages; or creating fake websites or apps.
The Federal Trade Commission (FTC) reported that investment scams robbed Americans of a staggering $3.8 billion in 2022, more than double the previous year’s losses of $1.8 billion. The FTC warned that these scams are becoming more sophisticated and prevalent, especially on social media platforms where they can reach millions of potential victims.
Therefore, meme-stock investors should be cautious and vigilant when they encounter any offers or advice that sound too good to be true. They should always do their own research and verification before investing in any stocks or platforms. They should also report any suspicious or fraudulent activities to the authorities and seek help if they have been scammed.