""These scams are designed to look legitimate and exploit trust," Brown said in a statement, urging consumers to carefully scrutinize online investment opportunities."
"In a typical pump-and-dump scheme, scammers use online ads featuring recognizable financial figures - often without their permission - to promote exclusive investment groups or guaranteed returns."
"Victims are then placed in group chats and fed what appears to be expert advice, along with fabricated success stories. Early investments may appear profitable, building trust and encouraging larger contributions."
"Once enough money has been invested, scammers sell off their holdings, causing prices to collapse and leaving victims with steep losses."
Maryland Attorney General Anthony G. Brown alerts residents about a rise in fraudulent investment schemes on social media, particularly on Meta platforms. Scammers utilize deceptive advertising, artificial intelligence, and tactics like deepfake videos to mislead users. Common schemes include pump-and-dump operations and bogus cryptocurrency investments, where victims are lured into investing large sums before realizing the fraud. Scammers often use recognizable figures to promote these schemes and encourage private conversations to evade oversight, leading to significant financial losses for victims.
Read at Miami Herald
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