Attorneys general from multiple states including Connecticut, Illinois, New Hampshire and Washington have issued coordinated alerts cautioning residents against a surge in fraudulent investment schemes spreading rapidly across Meta-owned platforms such as Facebook, Instagram and WhatsApp. Scammers are deploying deceptive advertisements, deepfake videos and unauthorized impersonations of prominent financial figures to promote pump-and-dump schemes, confidence scams and fake cryptocurrency opportunities. The warnings, released between April 6 and 7, 2026, urge investors to independently verify opportunities and avoid acting on unsolicited social media promotions that promise quick or guaranteed returns.
Coordinated Multi-State Alerts
Attorneys General William Tong of Connecticut, Kwame Raoul of Illinois, John M. Formella of New Hampshire and Nick Brown of Washington each highlighted the growing prevalence of these frauds. Fraudsters create misleading ads featuring fabricated endorsements from recognizable personalities including Kevin O’Leary of “Shark Tank,” Cathie Wood of Ark Invest and CNBC host Joe Kernen without their permission. These promotions often lure users into private investment groups before shifting conversations to encrypted messaging apps to evade platform oversight. The alerts note that such schemes exploit the trust users place in social media content, with scammers increasingly incorporating advanced deepfake technology to make their pitches appear legitimate.
Financial Harm and Official Concerns
Victims are typically drawn in with small initial investments that appear to generate artificial profits on cloned trading platforms, only to face escalating demands for additional “fees,” “taxes” or “verification charges” when attempting withdrawals. Many schemes request payments exclusively in cryptocurrency, rendering recovery nearly impossible once funds are transferred. Attorney General Formella emphasized the increasing sophistication of these operations, stating, “Scammers are getting more sophisticated and more convincing. If an investment opportunity promises guaranteed returns or pressures you to act quickly, especially on social media, it’s almost certainly a scam.” Attorney General Raoul described a worrying trend of bad actors using social media to lure consumers into groups designed to extract hard-earned savings, while Attorney General Tong advised Connecticut residents to stay vigilant, conduct thorough research and report suspected scams immediately.
How These Scams Typically Unfold
Scammers begin by placing targeted advertisements on Facebook and Instagram that direct users toward exclusive “insider” investment tips or group memberships promising high returns on stocks or digital assets. Once engagement occurs, perpetrators move discussions to WhatsApp or Telegram, where they build trust through fabricated testimonials and simulated trading results. Victims are then guided to fake investment portals that display early gains before imposing barriers to withdrawals, often in the form of repeated upfront payments. Pump-and-dump variants involve coordinated hype to inflate low-value asset prices temporarily, while confidence scams focus on developing personal relationships to solicit ongoing funds under various pretexts.
Critical Warning Signs
- Unsolicited advertisements or messages featuring celebrity or expert endorsements promising risk-free or guaranteed high returns via social media.
- Pressure to transfer conversations to private encrypted applications or to make immediate investment decisions to avoid missing out.
- Requests for payment in cryptocurrency or untraceable methods, often associated with crypto scams, coupled with excuses preventing use of standard banking channels.
- Investment platforms that initially show consistent profits but suddenly require additional fees for account activation, taxes or withdrawals.
Authorities recommend verifying any investment opportunity through licensed professionals and official regulatory databases rather than relying on promotions encountered on social media. Residents who suspect they have encountered such scams are encouraged to report them promptly to their state attorney general’s office or the Federal Trade Commission.
