Fintech firm teams up with ex-military intel and ex-NASA artificial intelligence personnel to detect and identify fraudulent pump and dump on stocks.
NEW YORK, [Press Release] - HedgeChatter, a global leader in social media analysis for the stock market, releases its market manipulation service allowing investors and traders to uncover stocks being highly subjected by outside fraudulent intent.
"Pump and dump tactics have increased in complexity. Several months ago scam artists created a fake Bloomberg website to pump and dump twitters stock, and it hasn't stopped there. Fraudsters have increased their methods to include direct attacks on stocks themselves using massive amounts of social media mentions," said James Ross, CEO of HedgeChatter.
In July 2014 the SEC released an investor bulletin titled: "Investor Alert: Social Media and Investing -- Stock Rumors"
"We've seen small, mid, and more recently large cap stocks being targets of attack by social bots using social media manipulation to attempt to drive stock prices one way or another. We've unfortunately witnessed CEO's take the brunt of the blame for a stocks performance, ended up in class actions suits, investors took losses, and no one really understood what just happened. We've entered a new era," said Ross, CEO of HedgeChatter.
"Twenty years ago it was boiler rooms. Today it's a $50 piece of software which creates thousands of online accounts to send pump messages luring educated investors into substantial losses. The number of stocks now being systematically manipulated by social influence and internet chat messages is increasing," said Ross, CEO of HedgeChatter.
The manipulation index parses and filters through multiple chat messages identifying duplicate messages from the same social accounts, from multiple social accounts, and other proprietary algorithms.
The manipulation index can be viewed through the HedgeChatter Dashboard Access, pulled via the API, or customers can subscribe directly to The Manipulation Report which provides a weekly review of sentiment analysis and manipulation a particular stock is being subjected with.
"Similar to viewing how many shorts a stock may have, the manipulation index shows how much malicious negative intent is being pushed against a stock. It's simply another tool for the trader and investor," said Ross, CEO of HedgeChatter.
"Considering there are over 500 thousand twitter and internet chat messages sent every single minute, investors need a personal analytics platform to filter noise, find relevance, and assist them in making better trading decisions. This is big data, this is the next layer of intelligence for the stock market, and investors need a tool at their disposal to keep informed in this age of social influence," said Ross, CEO of HedgeChatter.
In 2014 Entrepreneur named HedgeChatter one of the 100 most brilliant companies. HedgeChatter founders are comprised of Internet Specialists and Research Scientists with backgrounds in Internet algorithms, artificial intelligence, military intelligence and financial trading platforms.