Fraudsters are publishing fabricated news articles to artificially inflate stock prices of small companies, only to sell off their shares at the peak, leaving unsuspecting investors with losses.

The claim that fraudsters publish fabricated news articles to inflate stock prices of small companies, only to sell off their shares at the peak, aligns with known fraudulent activities such as 'pump and dump' schemes. These schemes involve disseminating false information to artificially increase stock prices, allowing fraudsters to sell their shares at a profit before the price collapses, leaving investors with losses. This practice has been documented in various studies and reports, including those by the Securities and Exchange Commission and academic research, confirming its occurrence and impact on financial markets Yale Insights, CU Boulder.