The FBI has issued a new warning when it comes to using social media platforms and messaging service apps.
Criminals are targeting U.S. stock investors through these platforms and applications using a scheme known as a “ramp-and-dump” stock manipulation.
This scheme works by targeting investors through online engagement, like social media advertisements and messages promoting an “investment club” of fellow investors — some of which are bots or fake accounts.
“These promotions typically direct victims to secure messaging apps where the group operates,” stated the FBI. “To appear credible, perpetrators may impersonate legitimate brokerage firms or well-known stock analysts.”
The group secretly controls a large volume of a low-priced stock and coordinates efforts to inflate its price — or ramp up — by encouraging investment club members to purchase shares.
Once the price is elevated, the criminals sell off — or dump — their shares at a profit. This leaves unsuspecting investors with significant losses as the stock value drops.
The FBI said it has seen at least a 300% increase in victim complaints related to this scheme so far in 2025.
You can protect yourself by recognizing several indicators, according to the FBI:
- Unsolicited investment tips received via “accidental” text messages or social media advertisements linking to online investment clubs, often hosted on secure messaging apps;
- Claims from well-known financial advisors or wealth managers offering exclusive stock recommendations through these online clubs;
- Pressure to act quickly based on a supposed market-moving event — such as a company breakthrough, new technology, or government approval; and,
- Urgent pitches to purchase low-priced stocks in new or emerging companies, often paired with promises of dramatic price increases or guarantees to cover any investor losses.
If anyone requests your personal information, access to financial accounts, or offers a financial benefit in exchange for sharing your info or opening an account, consider it as a red flag. Your information can be used to open an account.
If you suspect you have been victimized by investment fraud, report the incident to the FBI Internet Crime Complaint Center at ic3.gov.
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