By: Richard L. Smith
New Jersey officials are sounding the alarm over a growing wave of fraudulent investment schemes targeting residents across popular social media platforms.
According to a statement released by Attorney General Jennifer Davenport and the Bureau of Securities within the Division of Consumer Affairs, scammers are increasingly using platforms owned by Meta Platforms, including Facebook, Instagram, and WhatsApp, to carry out sophisticated financial fraud.
Authorities say criminals are deploying deceptive advertisements and advanced “deepfake” technology to lure unsuspecting victims into high-risk schemes designed to steal money.
Officials highlighted several common scams now circulating online: “Pump and dump” schemes, where scammers artificially inflate stock or cryptocurrency prices before selling off for profit, leaving investors with significant losses.
Confidence scams, in which fraudsters build trust with victims over time and persuade them to invest through fake platforms that ultimately drain their funds.
Cryptocurrency fraud, promising high returns or exclusive opportunities while convincing victims to transfer money or digital assets.
“We are concerned that social media platforms are increasingly becoming a hotspot for investment scams that swindle New Jerseyans out of their hard-earned money,” Davenport said in the statement, urging residents to carefully evaluate any financial opportunity promoted online.
Acting Division of Consumer Affairs Director Jeremy E. Hollander warned that many of these scams are designed to create urgency and excitement, pushing victims to act quickly without verifying legitimacy.
“Social media investment scams are designed to get people hyped up about exciting opportunities to make big money with little to no risk,” Hollander said. “If an opportunity seems too good to be true, it probably is.”
Bureau Chief Keith A. Alt added that fraud tactics are becoming increasingly sophisticated, making awareness and prevention critical for all investors.
Officials advise residents to slow down when presented with investment opportunities, verify sources independently, and maintain records of all communications. 
They also cautioned against so-called “asset recovery” services that promise to retrieve lost funds for a fee, noting that some may be scams themselves.
The Bureau has released additional guidance to help residents identify and avoid these schemes.