Attorney General Jennifer Davenport and the Bureau of Securities within the Division of Consumer Affairs warned New Jersey residents on Apr. 22 about a rise in fraudulent investment schemes taking place across Meta platforms, including Facebook, Instagram, and WhatsApp.
The warning highlights growing concerns about scammers using deceptive advertisements and deepfake technology to target investors with high-stakes frauds. The scams include pump and dump schemes involving hyped stocks or cryptocurrencies, confidence scams that build fake relationships to drain victims’ funds through bogus investment sites, and fraudulent cryptocurrency offers promising unrealistic 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.”
Jeremy Hollander, Acting Director of the Division of Consumer Affairs, said: “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. We’re reminding investors that if an opportunity seems too good to be true, it probably is.” Bureau Chief Keith A. Alt added: “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. 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 recommend that individuals pause before acting if pressured by urgent offers online; keep records when investing; be wary if contacted by so-called asset recovery specialists who promise help for a fee; and report suspected fraud cases using official channels.
The Office of Attorney General Matthew Platkin provides statewide enforcement authority over legal standards as well as consumer protection initiatives according to its official website. Its jurisdiction covers all counties in New Jersey according to its official website, influencing public safety through law enforcement oversight according to its official website. Services include state legal representation, crime lab support, victim advocacy programs according to its official website, all under a statutory mandate focused on justice throughout New Jersey according to its official website.
