Wall Street Breakfast Penny stock selloffs spark scam fears - report
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Aug 18, 2025 Recent selloffs in penny stocks are raising alarms over potential pump-and-dump scams. In a notable legal move, Google faces a hefty $36 million fine due to anti-competitive practices with Australian telecom companies. Meanwhile, Air Canada’s cabin crew is standing firm against a back-to-work order, continuing their strike efforts. Dive into the day’s biggest stock movers and discover what retail investors love and loathe in the current market landscape!
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Penny Stock Surges Followed By Crashes
- Several U.S.-listed Chinese penny stocks plunged after social-media promotions, suggesting coordinated momentum-driven moves.
- The pattern resembles pump-and-dump schemes that can quickly erase billions in market value.
Analytics And FBI Flag Growing Fraud Risk
- Predictive analytics firm InvestorLink estimates the declines wiped out about $3.7 billion in market value.
- The FBI also reported a 300% rise in victim complaints about dump stock fraud year-over-year.
Google Fined For Preinstall Deals In Australia
- The Australian Competition and Consumer Commission found Google paid Telstra and Optus to pre-install Google Search on Android phones.
- The regulator said this deal shut out rival search engines and harmed competition between 2019 and 2021.