N.J. attorney general warns of rising investment scams on Facebook, Instagram, WhatsApp
TRENTON, N.J. — New Jersey’s attorney general is warning residents about a growing number of investment scams targeting users on Meta platforms, including Facebook, Instagram and WhatsApp.
Attorney General Jennifer Davenport and the state Bureau of Securities said scammers are increasingly using deceptive ads and “deepfake” technology to lure victims into fraudulent schemes designed to steal money.
Officials said the scams often include so-called “pump and dump” schemes, in which fraudsters hype stocks or cryptocurrencies to drive up prices before selling off; “confidence” scams, where scammers build trust with victims before directing them to fake investment platforms; and fraudulent cryptocurrency offers promising high returns.
“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,” said Attorney General Davenport. “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.”
Officials said scammers often rely on urgency and pressure tactics to get victims to act quickly without verifying the legitimacy of an investment.
“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.”
Authorities also warned that victims may be targeted again by individuals claiming they can recover lost funds for a fee.
“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.”
Officials urged residents to verify investment opportunities, keep records of communications and avoid acting under pressure. Anyone who believes they have been a victim of an investment scam is encouraged to report it to the New Jersey Bureau of Securities online or by calling 1-866-I-INVEST (1-866-446-8378).
