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 spreading across Meta platforms, including Facebook, Instagram, and WhatsApp.
The warning highlights growing concerns over financial losses caused by deceptive advertisements and advanced technologies such as deepfakes used to lure investors. These scams often target individuals with promises of high returns or exclusive opportunities but result in significant financial harm.
Davenport said, “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. 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.”
Scams described include “pump and dump” stock or cryptocurrency schemes where prices are artificially inflated before scammers sell off assets; confidence scams involving fake relationships leading victims onto false investing sites; and fraudulent cryptocurrency pitches promising high returns without risk.
According to the official website, the New Jersey Attorney General Matthew Platkin aims to protect residents’ lives and property while upholding legal standards through statewide enforcement efforts. The office extends its services throughout all counties and municipalities in New Jersey according to its official website. It also influences public safety by enforcing laws across the state as reported by its official site. Statewide authority allows prosecution of offenses and regulation under statutory mandates according to its official website. Services include legal representation for state agencies, law enforcement oversight, crime lab support, victim advocacy programs, as well as consumer protection initiatives according to its official website.
Davenport encouraged anyone who may have been a victim of an investment scam related to these issues on Meta platforms or elsewhere online in New Jersey report incidents via phone at 1-866-I-INVEST (1-866-446-8378). She assured that any identifying information provided would be protected according laws governing privacy.
