If an investment sounds too good to be true, it probably is
Roseville, Calif. – California Attorney General Rob Bonta is warning Californians about a surge in fraudulent investment schemes circulating on Meta platforms, including Facebook, Instagram, and WhatsApp. Scammers are using deceptive ads and deepfake technology to impersonate trusted figures and lure victims into high-risk schemes that can drain life savings.
According to Bonta, these scams often use photos of well-known or trusted people without their permission in order to create the necessary trust to get into consumers’ pockets.
Common Investment Scams
Pump-and-Dump Schemes
Scammers promote low-value stocks or volatile cryptocurrencies through fake endorsements and “insider” tips. Victims are urged to join private groups, often moved to encrypted apps, where hype drives prices up. Once inflated, scammers sell off their holdings, leaving victims with steep losses.
Confidence (Relationship) Scams
Fraudsters build trust over time, posing as advisors or mentors. Victims are directed to realistic-looking, but fake, trading platforms that show fabricated profits. As victims invest more, they are later blocked from withdrawing funds or told to pay additional “fees,” which are never returned.
Protect Yourself
Be cautious of any investment promoted on social media, especially those promising guaranteed or unusually high returns. Legitimate financial professionals rarely solicit clients this way.
Cryptocurrency transactions are often irreversible. Always maintain records of all activity. Finally, avoid so-called “asset recovery” services demanding upfront fees; many are scams targeting victims a second time.
To avoid falling victim to predatory investment schemes on social media, people should take the following steps:
Watch for red flags
Be skeptical of guaranteed returns, urgent “act now” pressure, or celebrity endorsements, especially those created with AI. Treat requests involving cryptocurrency, moving conversations to encrypted apps, or handling other people’s money as major warning signs.
Verify before you invest
Research independently. Confirm credentials through FINRA’s BrokerCheck, check reviews, and verify email domains carefully; scammers often mimic legitimate addresses. Consult a trusted financial or legal advisor, and take seriously any warnings from your bank or advisor. If something feels off, don’t proceed.
Be cautious of deepfakes
Scammers increasingly use realistic fake videos to impersonate public figures. Look for subtle inconsistencies in audio or visuals, and search online to verify whether the content is authentic. Legitimate experts rarely promote investments through social media ads or obscure platforms.
Protect your information
Limit what you share on social media, keep profiles private, and confirm unusual messages, even from friends, through another method. Never share personal, financial, or login information, and do not grant remote access to your devices.
Anyone who believes they’ve been targeted or victimized should report it to local law enforcement and oag.ca.gov/report.
