Investor Alert Issued

Drummond warns Oklahomans of scam investment ads

Attorney General Gentner Drummond today issued an investor alert to warn Oklahomans about the prevalence of fraudulent investment scams on Meta platforms, including Facebook, Instagram and WhatsApp.

Scammers are increasingly using deceptive advertisements and deepfake technology to lure investors into high-stakes scams to defraud them of their savings. These scams include “pump and dump” scams, confidence scams and fraudulent cryptocurrency schemes that take advantage of victims to extract as much money from them as possible. Drummond said most fraudulent transactions, especially those involving cryptocurrency, are irreversible.

“From fake investment platforms to deepfake celebrity endorsements and fraudulent cryptocurrencies, scammers are using social media to target unsuspecting consumers,” Drummond said. “Reputable brokers and investment advisors do not typically post advice on social media platforms. If an investment sounds too good to be true, it is likely to be a scam.”

Pump and Dump Social Media Scams

In a pump and dump scheme, victims are lured into investment groups and convinced to invest in cryptocurrencies or low-priced stocks. The scammers advertise, hype and recommend buying the stocks or cryptocurrencies, increasing their prices, and then sell when the price is high, leading to victims losing their money.

Confidence Scams

In confidence scams, fraudsters develop trusting relationships with their victims and convince them to “invest” using fake investment platforms that drain victims’ money.

Investment Scam Protection Measures

Drummond said investors should be very cautious before responding to any social media investment ads and making any related investments. Social media sites may be hosting billions of scam ads each day. Consumers are encouraged to stay vigilant to avoid falling for predatory schemes.

How to recognize investment scams

1. Identify Red Flags

When browsing social media sites like Facebook and Instagram and interacting with supposed investment professionals online, be highly skeptical if you see promises of guaranteed returns, celebrity endorsements, cryptocurrency demands or high-pressure tactics such as missing out if you don’t invest immediately.

2. Verify Before Investing

Never take an ad or salesperson’s word at face value. Conduct your own research such as verifying credentials through the Financial Industry Regulatory Authority's BrokerCheck database, check online reviews for complaints or scams, verify that email addresses are associated with a real advisor’s company and check for spelling errors. Drummond said it’s best to consult a trusted legal professional or financial advisor who can advise you if the investment is proper.

3. Beware of "Deepfakes" and AI

Scam ads can use sophisticated technology to mimic real people in videos or livestreams. Look for signs such as videos that look slightly off or audio not matching the video.

4. Protect Your Identity and Network

Your Facebook, Instagram and WhatsApp profiles are gold mines for scammers who are looking to connect. Choose to keep your friends list, photos and posts private. Never provide login information, social security numbers or financial details to anyone you meet online. Similarly, never allow anyone you do not know well to access your computer or mobile phone remotely to help with your existing accounts or to open a new one. Scammers often pose as a representative of a company consumers have an account with to try to access and empty their accounts.

Drummond and 41 other state attorneys general sent Meta a letter last summer urging the company to improve its processes for reviewing advertisements. Drummond encourages anyone who may have been a victim of online investment scams to contact his Consumer Protection Unit online or call 833-681-1895.