TRENTON – Attorney General Jennifer Davenport and the Bureau of Securities of the Division of Consumer Affairs, are warning New Jersey residents about the prevalence of fraudulent investment schemes proliferating across Meta platforms, including on Facebook, Instagram, and WhatsApp.
Scammers are increasingly using deceptive advertisements and “deepfake” technology to lure investors into high-stakes scams to defraud them financially.
These scams include:
“Pump and dump” scams that trick investors into buying hyped stocks or cryptocurrencies, driving up prices so scammers can sell at a profit and leaving victims with losses;
“Confidence” scams, in which fraudsters develop trusting relationships with their victims and convince them to “invest” using fake investment platforms that drain the victims’ money; and
Fraudulent cryptocurrency schemes that use digital currencies to deceive people into giving away money or assets, often with the false promise of high returns or exclusive opportunities.
Specific details about how these scams work and tips on how to spot and avoid them are available in the document linked here: Informational Document.
“We are concerned that Meta’s social media platforms are increasingly becoming a hotspot for investment scams that swindle New Jerseyans out of their hard-earned money,” Davenport said in a release. “We’re urging New Jersey residents to carefully scrutinize investment opportunities being pitched on social media. These platforms make it very easy for bad actors to reach large audiences quickly and with little oversight, which is why they’re fertile ground for investment scams. Preventing and stopping these fraudulent schemes in their tracks is an essential part of our work to make it easier for New Jerseyans to afford everyday life.”
“Social media investment scams are designed to get people hyped up about exciting opportunities to make big money with little to no risk. The goal is to get investors to jump in quickly without taking time to vet the legitimacy of the opportunity, the people promoting it, or the risks involved,” said Jeremy E. Hollander, Acting director of the Division of Consumer Affairs. “We’re reminding investors that if an opportunity seems too good to be true, it probably is.”
“As fraudsters get more sophisticated, no one is immune from being scammed. Investor protection begins with prevention, which is why we’re raising awareness about the growing number of investment scams targeting people on social media,” said Bureau Chief Keith A. Alt. “The information we’re providing today will help New Jerseyans understand how these scams work and make it easy to spot and avoid them online.”
New Jerseyans should keep in mind that scammers rely on urgency. If you are being pressured to act quickly, pause and verify before you act. If you choose to invest, always keep a paper trail and archive all communications. And if you lose your money, you may hear from a purported asset recovery specialist or attorney who promises to retrieve the money you lost for a fee. Be very wary of these promises, as some of these individuals may have no interest in, or may not be qualified to, help you and may be taking advantage of your situation to make money – and may even be scammers themselves.
Attorney General Davenport encourages anyone who may have been a victim of an investment scam to report it online at www.NJSecurities.gov or by calling 1-866-I-INVEST (1-866-446-8378).
Any identifying information provided to the Attorney General’s Office will be protected in accordance with the law and policies on the safeguarding of identifying information.
