Officials say “pump and dump” and AI-driven fraud schemes are targeting victims through social media ads.
Baltimore, MD – Maryland Attorney General Anthony Brown is warning residents about a surge in sophisticated investment scams spreading across major social media platforms, including Facebook, Instagram, and WhatsApp.
In a consumer alert issued Monday, Brown said scammers are increasingly using deceptive advertisements, fake endorsements, and artificial intelligence to lure victims into fraudulent investment schemes designed to drain savings.
“Scammers are increasingly using deceptive advertisements and ‘deepfake’ technology to lure investors into high-stakes scams to defraud them of their savings,” the Attorney General’s Office said.
Scams often follow a calculated pattern
Officials outlined how many of these schemes operate, particularly “pump and dump” scams and so-called confidence scams.
In pump-and-dump operations, victims are drawn in through ads featuring recognizable figures—often without permission—and encouraged to invest in low-priced stocks or cryptocurrencies. Once prices rise, scammers sell off their shares, leaving victims with losses.
Confidence scams take a more personal approach, with fraudsters building relationships over time and directing victims to fake investment platforms that appear legitimate.
“People are funneled into group chats where they receive so-called ‘expert’ advice and false testimonials,” the alert states.
Warning signs include pressure and “guaranteed” returns
The Attorney General’s Office urged residents to be skeptical of investment opportunities promoted on social media, especially those that include:
- Promises of guaranteed or risk-free returns
- High-pressure tactics urging immediate investment
- Celebrity endorsements or unfamiliar financial “experts”
- Requests to move conversations to encrypted apps like WhatsApp or Telegram
- Demands involving cryptocurrency transactions
“Most reputable broker-dealers and investment advisors do not post specific investment advice on social media platforms,” the office noted.
Officials urge verification and caution
Consumers are encouraged to independently verify investment opportunities, check credentials through official databases, and consult trusted financial advisors before committing money.
Authorities also warned that many scams now use deepfake videos or altered images to impersonate well-known figures, making them more convincing.
“Trust your instincts and think twice before investing: If an investment seems fishy or too good to be true, it probably is,” the alert states.
Residents who believe they have been targeted or victimized are urged to report incidents to the Maryland Attorney General’s Securities Division or Consumer Protection Division.
Key Points
- Maryland AG warns of surge in investment scams on Meta platforms
- Fraudsters using deepfakes, fake ads, and crypto schemes to target victims
- Officials urge public to verify investments and avoid “guaranteed return” claims