State warns investment scams are growing
Attorney general says to think before you act
By: Katie Sobko
NorthJersey.com
USA Today Network - New Jersey
..... The state attorney general is warning New Jersey residents to be on the lookout for scams on social media platforms run by Meta, including Facebook and Instagram.
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Attorney General Jennifer Davenport and the Bureau of Securities have seen a prevalent of investment schemes and "deepfakee" technology to trick people into high-states scams to take their money, the Attorney General's Office said on April 22. [2026]
..... One model of the scam, known as the "ump and dump," tricks people into buying hyped stocks or cryptocurrencies, which drives up the prices so the scammers can sell high and leave the victims with losses.
..... Another scam, the "confidence" model, is when fraudsters develop trusting relationships with their victims and convince them to "invest" using fake investment platforms that drain the victims' money.
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There are also fake cyptocureency schemes that use digital currencies to deceive people into giving away money or assets, often with the false promise of high returns or exclusive opportunities.
..... Davenport said her office is concerned that the platforms are "increasingly becoming a hot spot for investment scams that swindle New Jerseyans out of their hard-earned money."
..... "We're urging New Jersey residents to carefully scrutinize investment opportunities bing pitched on social media," she said.
..... "These platforms make it var easy for bad actors tor each large audiences quickly and with little oversight, which is why they're fertile ground for investment scams."
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Davenport's warning said scammers rely on urgency, and people can be pressured to act quickly instead of pausing and verifying before acting.
..... Those who choose to invest should always keep a paper trail and archive all communications.
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If money is lost, invests should also be wary of purported asset recovery specialists or attorneys whew promise to retrieve the lots money for a fee.
..... "social media investment scams are designed to get people hyped up about exciting opportunities to make big money with little to no risk, said Jeremy Hollander, acting director of the Division of Consumer Affairs. "the goal is to get investors to jump in quickly without taking time to vet the legitimacy of the opportunity, the people promoting it or the risks involved."
..... Davenport is encouraging anyone who may have been a victim of an investment scam to report it Online at NJSecuriites.gov or by calling 866-I-INVEST (866-446-8378).
..... Katie Sobko covers the New Jersey Statehouse. Email: sobko@northjersey.com