New York Attorney General Letitia James issued an investor alert on Apr. 6 warning New Yorkers about a rise in fraudulent investment schemes operating across Meta platforms, including Facebook, Instagram, and WhatsApp. The alert highlights the use of deceptive advertisements and deepfake technology by scammers to defraud individuals of their savings through pump and dump schemes, confidence scams, and fake cryptocurrency offers.
The warning is significant as it addresses the growing threat posed by sophisticated online scams that can lead to substantial financial losses for residents. The Office of the Attorney General urges investors to scrutinize social media investment ads carefully before making any investments.
“Scammers are using social media to exploit the names of trusted financial leaders and celebrities to steal New Yorkers’ hard-earned savings,” said Attorney General James. “From fake investment platforms to deepfake celebrity endorsements to fraudulent cryptocurrencies, these schemes are becoming more sophisticated. I urge everyone to remain vigilant, be skeptical of any social media investment ads and remember: if an investment sounds too good to be true, it is probably a scam. Any suspicious ads or offers should be reported to my office.”
James outlined how pump and dump scams typically lure victims into groups with promises featuring well-known personalities without their consent before pressuring them onto encrypted messaging apps like WhatsApp or Telegram. Victims receive purported expert advice in group chats until they invest large sums in stocks or cryptocurrencies that are then sold off by scammers at inflated prices.
Confidence scams involve building trust with victims who are directed toward fake investing platforms that mimic legitimate sites. Victims may initially see returns but eventually face requests for fees when trying to withdraw funds; once payments stop, scammers disappear along with invested money.
The Attorney General’s office provides several recommendations for protection: being wary of guaranteed returns or high-pressure tactics; verifying credentials through resources such as FINRA’s BrokerCheck; watching out for deepfakes; securing personal profiles on social media; never sharing sensitive information online; and consulting trusted advisors before investing.
James also warned about follow-up frauds involving asset recovery specialists who may themselves be scammers seeking additional fees from previous victims.
Letitia James heads the New York Attorney General’s office according to the official website. The agency promotes social justice through civil rights enforcement and consumer advocacy according to its official website, operates regional offices statewide according to its official website, provides services such as consumer fraud investigations and tenant dispute mediation according to its official website, protects public safety while upholding civil rights according to its official website, and functions as a public law enforcement agency for New York according to its official website.
Anyone who believes they have been targeted by these types of scams is encouraged by James’s office to report incidents online or call 1 (800) 771-7755.
