The Fraud
Fast-talking fraudster promotes a loser stock in online message boards, social networking sites, via telemarketing, and lots of spam. The relentless hype causes uninformed people to impulsively buy into the stock tip, driving the price way up. The fraudster then bails out of his holdings at the pumped up high, having dumped all his worthless shares on the unsuspecting hot tip believers.
The Flaw
The rapid dispersal of information and emphasis on urgency to act causes ignorant buyers to become unwittingly complicit in the scheme. Sounds like such a good tip!
The Fix
Again and again . . . if it's just too good to be true, what do we do??? Run, run away!