HARRISBURG – PA Attorney General Dave Sunday is warning Pennsylvanians about the prevalence of fraudulent investment schemes on Meta platforms, including Facebook, Instagram, and WhatsApp. The warning is part of a coalition of attorneys general’s efforts to prompt accountability from Meta over their platforms, specifically, a more robust review of advertising in response to the rapid spread of fake investment ads. Scammers are increasingly using deceptive ads and “deepfake” technology to lure potential investors into high-stakes scams that aim to extract as much money as possible from victims. Attorney General Sunday recommends Pennsylvanians stay vigilant to avoid falling victim to predatory investment schemes on social media and take the following steps to protect themselves:
1. Identify “Red Flags”
When browsing social media sites like Facebook and Instagram and interacting with supposed investment professionals online, be highly skeptical if you see:
- Promises of guaranteed returns: No legitimate investment is “risk-free” or offers a guaranteed return.
- High-pressure tactics: Warnings that you will “miss out” or demands to invest immediately.
- Celebrity endorsements: Scammers often use AI-generated images or videos of famous entrepreneurs to lure victims.
- Cryptocurrency demands: Requests to use crypto ATMs or to send crypto to private wallets or platforms should be regarded with suspicion.
- Requests to accept other people’s money: Scammers will sometimes ask victims to accept other people’s funds in their bank accounts and convert them to cryptocurrency.
- Platform hopping: Requests to move the conversation from Facebook to encrypted apps like WhatsApp or Telegram.
2. Verify Before You Invest
Never take an ad or salesperson’s word at face value. Remember that a salesperson’s job is to be persuasive and paint a rosy picture. Conduct your own independent research:
- Verify credentials: Use FINRA’s BrokerCheck to confirm if a professional is registered. But be wary, scams may often impersonate people, firms, and their credentials.
- Search for reviews: Search the name of the company or salesperson alongside words like “scam” or “complaint.”
- Check email addresses: Verify that you are communicating with a real email associated with a real advisor’s company. Remember that scammers may register email addresses that are slightly different or may change one letter from a legitimate domain.
- Consult with a trusted advisor: Before investing, consult a trusted legal professional or licensed financial advisor who can advise you if the investment is proper.
3. Beware of “Deepfakes” and AI
Scam ads now use sophisticated technology to mimic real people in videos or livestreams.
- Spot the fake: If a video seems slightly “off” or the audio doesn’t perfectly match the lip movements, it may be a deepfake.
- Reverse search: If you see a video of a famous figure, search for the original footage online. Fraudsters often repurpose old interviews.
- Beware of financial advice: Famous figures do not usually provide financial advice online or advertise investments in obscure cryptocurrency trading platforms.
4. Protect Your Identity and Network
Your Facebook, Instagram, and WhatsApp profiles are gold mines for scammers looking to build a relationship with you.
- Lock down your profile: Change your settings to keep your friends list, photos, and posts private. This prevents scammers from seeing who you know.
- Verify friends: If a friend suddenly messages you about a “great investment opportunity,” contact them outside of Facebook via phone call or text to ensure their account hasn’t been hacked.
- Never share credentials: Do not provide login info, social security numbers, or financial details to anyone you met online.
- Do not provide strangers access to your devices: Do not allow anyone you do not know well to access your computer or mobile phone remotely to help you with your existing investment account or open a new account.
Most reputable broker-dealers and investment advisors do not post specific investment advice on social media platforms. Anyone who may have been a victim of these types of scams can report it to the Bureau of Consumer Protection at 1-800-441-2555 or email at scams@attorneygeneral.gov.
