Methodology
How ScamDunk works
Our multi-step analysis helps identify potential stock manipulation patterns using market data and behavioral indicators.
Pipeline
The analysis process
- 1
Market Data Collection
We use published and historical market data including price, volume, market cap, and trading history for the stock you're analyzing. Scans are not live.
- 2
Pattern Detection
Our algorithms scan for price and volume patterns that are commonly associated with pump-and-dump schemes and other manipulation tactics.
- 3
Structural Analysis
We evaluate characteristics that make stocks more vulnerable to manipulation, such as market size, trading liquidity, and exchange listing.
- 4
Behavioral Analysis
If you provide promotional text, we analyze it for red-flag language like guaranteed returns, urgency tactics, or claims of insider information.
- 5
Regulatory Check
We cross-reference against SEC trading suspension lists and other regulatory databases for known problem securities.
- 6
Risk Assessment
All signals are combined into an overall risk score and classification, with a detailed breakdown of what was detected.
Signals
What we analyze
Structural Factors
Stock characteristics that make them more vulnerable to manipulation:
- • Stock price levels (penny stocks)
- • Market capitalization size
- • Trading volume and liquidity
- • Exchange listing type
Price & Volume Patterns
Suspicious movements that may indicate manipulation:
- • Unusual price spikes
- • Abnormal volume increases
- • Pump-and-dump signatures
- • Volatility anomalies
Regulatory Alerts
Official warnings and regulatory actions:
- • SEC trading suspensions
- • Enforcement actions
- • Regulatory warnings
Behavioral Indicators
Red flags in promotional language:
- • Guaranteed return promises
- • Urgency and pressure tactics
- • Claims of insider information
- • Unsolicited contact patterns
Results
Understanding risk levels
HIGH Risk
Multiple significant red flags detected. The stock shows strong indicators commonly associated with manipulation schemes. Exercise extreme caution.
MEDIUM Risk
Some concerning signals detected. The stock has characteristics that warrant additional research before making any decisions.
LOW Risk
Few or no manipulation indicators detected. This does NOT mean the stock is a good investment—only that obvious scam signals were not found.
Honesty
Important limitations
What we can't detect:
- • Financial statement fraud
- • Sophisticated manipulation schemes
- • Future stock performance
- • Management integrity issues
What you should know:
- • US markets only (NYSE, NASDAQ, OTC)
- • Data may be delayed
- • False positives are possible
- • Not financial advice