Attorney General Formella Warns of Investment Scams on Meta Platforms

Concord, NH - Attorney General John M. Formella is warning Granite Staters about a rise in fraudulent investment schemes on Meta platforms, including Facebook, Instagram, and WhatsApp. Scammers are using deceptive ads, impersonations, and "deepfake" technology to lure victims into pump-and-dump schemes, confidence scams, and fraudulent cryptocurrency investments designed to drain their savings.

"Scammers are getting more sophisticated and more convincing," said Attorney General Formella. "If an investment opportunity promises guaranteed returns or pressures you to act quickly, especially on social media, it's almost certainly a scam."

The New Hampshire Department of Justice Consumer Protection and Antitrust Bureau urges residents to closely scrutinize any investment promoted on social media. Legitimate broker-dealers and investment advisors rarely advertise specific investment opportunities this way. Anyone who believes they may have been targeted or victimized should report it to the Consumer Protection and Antitrust Bureau and the FBI's Internet Crime Complaint Center.

How Pump-and-Dump Scams Work: These scams lure victims into online groups promoting low-priced stocks or cryptocurrencies. Scammers hype the investment to drive up the price, then sell at the peak, leaving victims with losses.

Typical pattern:
1. The Bait: Ads on Facebook or Instagram feature recognizable figures, such as Cathie Wood, Joe Kernen, or Kevin O'Leary, without permission, often promising "insider" access or guaranteed returns.
2. The Shift: Users are directed to encrypted apps like WhatsApp or Telegram, away from platform oversight.
3. The Hook: Victims receive "expert" advice and false testimonials. Early gains may appear real, encouraging larger investments before prices collapse.

How Confidence Scams Work: These scams build trust and steer victims to fake investment platforms.

Typical pattern:
1. The Bait: Ads promote an investment strategy or platform and collect contact information.
2. The Build: Scammers cultivate relationships and direct victims to realistic-looking, but fake, platforms. Small initial "profits" may be shown or even withdrawn to build credibility.
3. The Trap: When victims try to withdraw funds, they are told to pay fees or taxes. The money is never returned, and the scammers disappear.

Protect Yourself from Social Media Investment Scams

Watch for red flags:
• Guaranteed or "risk-free" returns
• High-pressure tactics or urgency
• Celebrity endorsements or AI-generated videos
• Requests to move conversations to encrypted apps
• Demands involving cryptocurrency or handling others' funds
Verify before you invest:
• Confirm credentials through FINRA BrokerCheck (and beware of impersonators)
• Search for complaints or scam reports
• Double-check email addresses and domains
• Consult a trusted advisor
• Take warnings from your bank or financial advisor seriously
• Trust your instincts-if it seems too good to be true, it is
Be aware of deepfakes:
• Look for mismatched audio or unnatural video
• Reverse-search suspicious videos or images
• Be skeptical of financial advice tied to public figures
Protect your identity:
• Keep social media profiles private
• Verify unexpected messages from friends offline
• Never share login credentials or financial information
• Do not allow remote access to your devices

Exercise caution before sending money, since fraudulent transactions, especially those involving cryptocurrency, can be difficult or impossible to reverse. If you suspect you've been scammed, report it as quickly as possible. Keep records of all communications and be wary of "asset recovery" services that charge upfront fees, as they may be scams themselves.