"If you go back 5–10 years, we might not have had a single conviction and not even a single indictment. So this is a phenomenon that is becoming more and more common, and that is why we choose to go out and warn now," says Peter Nylén.
"Very serious"
The scandal-ridden Intellego, which sells color indicators for UV radiation, is an example of a large-scale scam that used false and misleading information. Most of the listed company's reported revenue last year turned out to be a scam, according to the investigator:
It may also be the case that listed companies downplay setbacks or cover them up completely, which is also very serious.
Behind other scams, you find "criminal elements" who are not active in the listed company in question, according to Nylén. The approach varies.
It can either be that they acquire and buy into an already listed company and take control of it - this can happen via so-called reverse acquisitions - or it can also happen by going public and putting a new company on the stock exchange, where the purpose is actually to inflate the valuation and cash out.
Source criticism is the best protection
Sweden is particularly vulnerable, with a large amount of household savings in the stock market and many shares in small growth companies on various stock exchange lists, according to the investigator.
Nylén points out, among other things, how Swedes were hit harder than savers in many other countries in the large global "pump and dump" fraud that was revealed last year.
It was very widespread in Sweden. There were 5,000 people who lost half a billion kronor.
Often the damage is already done in the form of large losses for small savers when law enforcement agencies come into the picture.
Investors must be very vigilant about the risk that stock prices not only go up and down, but also about the risk that you may be defrauded and buy shares in a castle in the air.
Source criticism is the best protection for small savers, according to Nylén:
If you receive a stock tip from a person you don't know, you should probably assume that the tip comes because the person is speaking on their own behalf.
Don't believe in exaggerated promises. If it sounds too good to be true, then it probably isn't.
