These Facebook Investment Ads Are Scams
Investment scams are nothing new: Scammers have long used “pump and dump” tactics to boost stocks or cryptocurrencies by playing on emotions like fear and greed. And who wouldn’t want a big — or even steady — return on their money, especially amid tariffs and other economic turmoil ?
Scammers are now cashing in on this by posting scam ads on Facebook to lure users into handing over large sums of money. Here’s how to spot these schemes and avoid becoming a victim.
Investment Scams on Meta Platforms
According to a group of 42 state attorneys general , current fraudulent investment campaigns also contain elements of impersonation fraud.
The scheme starts with a Facebook ad featuring well-known investors including ARK Investment Management’s Cathie Wood, CNBC’s Joe Kernan, and Fundstrat’s Tom Lee, as well as other wealthy people like Warren Buffett and Elon Musk (none of whom have any actual connection to the ads). If you click on the ad, you’ll be prompted to download or open WhatsApp to join an investment group.
This is where the pump-and-dump begins. “Experts” in the group advise members to buy certain stocks at inflated prices, which they then sell for a profit. The letter from Meta’s CEO detailing the scam includes reports of individuals losing $40,000 to $100,000 or more after clicking on fraudulent Facebook ads.
Other types of investment scams that have emerged on Facebook involve cybercriminals harvesting sensitive personal information through fraudulent investment platforms (including by faking celebrity endorsements).
Investment Scam Red Flags to Look Out For
For many people, it seems obvious that they shouldn’t get investment advice from an ad on Facebook or in a WhatsApp group. But fear and greed are powerful emotions, and scammers are counting on these social engineering tactics to work at least some of the time.
That’s why you should be wary of any advice that promises unrealistic rates of return in a short period of time without risk of loss, as well as endorsements from celebrities, politicians, and famous investors (who almost certainly don’t endorse anything). It’s also just good practice not to click on Facebook ads, which are an easy vector for scams and malware.
Another sign of a scam is content or a message that appears to be generated by AI. After joining a WhatsApp group , an investigator from the New York Attorney General’s Office received a call from a scammer who used AI to translate his speech into English. Unfortunately, emotions can cloud our ability to identify AI-generated content if we want to believe what we see.