Webull UK CEO Raises Alarm Over Sophisticated Stock Scam Targeting Retail Investors

In a sharp warning to retail investors, Nick Saunders, CEO of Webull Securities UK, has called attention to an unsettling rise in fraudulent stock manipulation schemes that are now targeting real brokerage accounts. Writing on LinkedIn, Saunders described what he sees as a “disturbing evolution” of pump-and-dump scams — a decades-old tactic that has now become more dangerous with the use of hacked accounts and private messaging apps.

“These aren‘t your typical online hype plays,” Saunders wrote. “We’re seeing coordinated efforts where fraudsters gain access to legitimate trading accounts, take positions in obscure stocks, then flood platforms like WhatsApp and Telegram with false insider tips to lure in unsuspecting investors.”

Pump-and-dump scams work by artificially inflating a stock‘s price through deceptive promotion, then quickly selling off the shares, leaving those who bought late with devastating losses. While the method isn’t new, Saunders emphasized that the execution has changed — and the consequences have become more severe.

One recent case, according to sources in the UK trading community, involved a micro-cap stock that spiked nearly 400% in a single afternoon before collapsing just as quickly. Investigations later revealed the spike had been orchestrated by a small group using compromised accounts and mass messaging tools.

Victims often assume safety because the stocks are listed on regulated exchanges. “Thats the trap,” Saunders explained. “They see Nasdaq tickers and assume legitimacy, not realizing the price itself is being manipulated.”

The damage can be swift and irreversible. Saunders noted that several investors in recent weeks lost their entire savings in these schemes, and that traditional warnings are no longer effective: “We can‘t rely on blog posts and disclaimers anymore — they’re too easy to ignore or miss.”

Saunders urged stronger industry-wide cooperation, including daily intelligence-sharing between brokers and regulators, and the ability for platforms to restrict access to suspect stocks without fear of user backlash. “Right now, were often too slow to react. We need faster coordination and more proactive intervention.”

The warning comes amid broader concerns about the vulnerability of retail traders to social media-driven market manipulation. With encrypted chat apps and spoofed trading platforms in the mix, the scams are getting harder to detect — and more costly for those who fall for them.

As Saunders put it: “We‘re committed to protecting our users, but this battle can’t be fought by one firm alone. Its time the industry moves together.”