Illinois Attorney General Kwame Raoul has issued a warning about investment scams that are being posted on Meta social media platforms, including Facebook, Instagram and WhatsApp.

Raoul said the scams include “pump and dump” scams, confidence scams and fake cryptocurrency schemes using deceptive ads and deepfakes to lure investors into high-stakes scams to take their savings.

“Pump and dump” scam work by luring victims into investment groups and convincing them to invest in either crypto or low-priced stocks. The ads used often feature recognizable figures from television without their permission, or feature lesser-known financial advisors that are trusted by specific cultural groups or geographical communities, also without their permission.

The ads promise “insider” memberships or “guaranteed” high-return tips, Raoul’s office said, and once users click on an ad, they are pressured to move their conversation to WhatsApp or other encrypted platforms like Telegram or Signal.

Then the victims are funneled into group chats for “expert” advice and fake testimonials. Eventually they’re convinced to buy stocks or crypto, convinced by the fake tips appearing to generate profit to make larger investments, which then inflates the price, allowing the scammers to sell it off at a profit while the victims lose money when the price plummets.

In confidence scams, the thieves convince their victims to invest using fake platforms that drain their money. They also use ads featuring well-known figures without permission to take victims to other platforms where they are asked to enter their contact information.

The scammer build trust with their victims and then guide them to fake websites made to look like trading platforms, and coax them over time to invest more and more money. When victims eventually want to withdraw their returns, the scammers charge them fees or taxes to do so but still don’t’ release the funds, or find other excuses not to let them withdraw their investments. Once the victim stops paying the fees or making investments the scammers then disappear.

“There is a worrying trend of bad actors using social media to purposely lure consumers into investment groups intent on scamming them out of their hard-earned money,” Raoul wrote in a statement. “I recommend all Illinoisans who are regularly on social media platforms learn about these scams and review our tips to avoid becoming a victim of one of these sophisticated scams.”

The Attorney General’s Office highlighted the following red flags on social media sites when interacting with or seeing ads for investment professionals online:

Promises of guaranteed returns: No legitimate investment is “risk-free” or offers a guaranteed return.

High-pressure tactics: Warnings that you will “miss out” or demands to invest immediately.

Celebrity endorsements: Scammers often use AI-generated images or videos of famous entrepreneurs to lure victims.

Cryptocurrency demands: Requests to use crypto ATMs or to send crypto to private wallets or platforms should be regarded with suspicion.

Requests to accept other people’s money: Scammers will sometimes ask victims to accept other people’s funds in their bank accounts and convert them to cryptocurrency. 

Platform hopping: Requests to move the conversation from Facebook to encrypted apps like WhatsApp or Telegram.

Raoul is also reminding Illinoisans to verify all credentials and investment platforms before you invest anymore through independent searches or platforms like FINRA BrokerCheck; learn how to spot AI and deepfakes on social media; and lock down and protect your identity and network on social media, including verifying friends when accepting follow requests, never sharing credentials and never allowing strangers access to your devices.  

If you think you have been the victim of an investment scam, you can file a complaint on the Illinois Attorney General’s website.