Securities regulators are warning investors about a new twist on the “pump and dump” stock-fraud scam that uses text messaging to tout stocks, reports the AP via Techdirt

“The National Association of Securities Dealers, the brokerage industry’s self-policing organization, issued an “investor alert” Tuesday advising people to ignore such messages with “hot” stock tips on their cell phones.

“The emergence of text messaging offers fraudsters another cheap and easy way to reach large numbers of potential investors,” John Gannon, the NASD’s vice president for investor education, said in a statement. “Now more than ever, investors need to be vigilant about doing their homework before investing and taking the necessary steps to reduce the likelihood of falling prey to these scams.”

You really have to agree with Mike Masnick on this one: “Are there really people who believe that a random text message spam on their mobile phone is actually providing them with a hot stock tip?”.