HARRISBURG — Pennsylvania Attorney General Dave Sunday is warning residents about a rise in fraudulent investment schemes circulating on social media platforms, including Meta-owned Facebook, Instagram and WhatsApp.

The alert is part of a multistate effort urging Meta to strengthen oversight of advertising, particularly as fake investment ads and so-called “pump-and-dump” schemes proliferate online.

According to the Office of Attorney General, scammers are increasingly using deceptive advertisements and artificial intelligence, including “deepfake” technology, to lure victims into high-risk investment scams. These schemes often involve fraudulent cryptocurrency opportunities, confidence scams and manipulated stock promotions designed to extract large sums of money.

Sunday urged consumers to carefully scrutinize investment-related content on social media, noting that legitimate broker-dealers and investment advisers typically do not offer specific investment advice through such platforms.

“We continue to see lures and traps online — fueled by A.I. — that dupe people into emptying their bank accounts in favor of fake investment opportunities,” Sunday said. “Be aware that these scams often involve depicted celebrities and misrepresentations attached to famous companies.”

How the scams work

In pump-and-dump schemes, victims are enticed to join online investment groups and persuaded to buy low-priced stocks or cryptocurrencies. Scammers artificially inflate the price through coordinated promotion, then sell their holdings at the peak, leaving victims with losses when prices collapse.

These scams often begin with social media advertisements featuring recognizable public figures — such as Cathie Wood, Joe Kernen or Kevin O’Leary — whose images are used without permission. Users who engage with the ads are typically directed to encrypted messaging platforms, where they are added to group chats offering fraudulent “expert” advice and testimonials.

Confidence scams follow a similar pattern but focus on building trust over time. Victims are guided to fake investment platforms and encouraged to deposit funds. When they attempt to withdraw money, they are told to pay additional fees, which scammers collect before cutting off contact.

Warning signs

Officials advise consumers to be cautious of:

Promises of guaranteed or risk-free returns

High-pressure tactics urging immediate investment

Celebrity endorsements tied to unfamiliar platforms

Requests to move conversations to encrypted apps

Demands for cryptocurrency payments or transfers

Consumer guidance

Residents are encouraged to independently verify investment opportunities, including checking credentials through regulatory databases and researching companies or individuals for complaints.

Officials also recommend safeguarding personal information by limiting public social media details, verifying unexpected messages from contacts and avoiding sharing financial or login credentials online.

Anyone who believes they have been targeted or victimized by an investment scam is urged to contact the Pennsylvania Office of Attorney General’s Bureau of Consumer Protection at 800-441-2555 or by email.

State officials said efforts to hold social media platforms accountable for fraudulent advertising are ongoing.