Press Releases
06/11/2025
Attorney General Tong Leads a Bold Bipartisan Coalition Urging Meta to Combat Fraudulent Investment Advertisements
Hartford, CT — In a significant move aimed at safeguarding users, Attorney General William Tong has joined forces with a bipartisan coalition of 42 attorneys general, calling upon Meta Platforms, Inc. (Meta) to take decisive action against fraudulent investment ads proliferating on Facebook. These deceptive ads have been enticing users into risky pump-and-dump schemes, resulting in tremendous financial losses for unsuspecting victims.
The situation is dire. Reports indicate that individuals are losing hundreds of millions of dollars due to these scams. One alarming case involved a victim who lost over $100,000 after engaging with a fraudulent Facebook ad that falsely claimed association with a reputable investment management firm. In their letter to Meta, the coalition outlines the urgent need for improved scrutiny of advertisements before they are published on the platform.
“As many individuals seek new ways to supplement their income amidst rising living costs, they must remain vigilant against get-rich-quick schemes on social media,” stated Attorney General Tong. “We are witnessing an alarming surge in fake advertisements for investment scams that lead to devastating financial losses. Meta has a critical responsibility to enhance their processes for identifying and removing these fraudulent ads before they cause further harm. I implore all Facebook users in Connecticut to stay alert and conduct thorough research before committing their hard-earned money,” he emphasized.
Disturbing Tactics Behind Fraudulent Ads
These fraudulent Facebook ads frequently feature recognizable figures like Warren Buffet, Cathie Wood, and Elon Musk to pique user interest. However, the organizations behind these ads are wholly unconnected to these reputable individuals. The ads typically boast unrealistic returns on investments and may even offer free consultations or investment advice. Once users engage, they are often redirected to WhatsApp groups where they fall prey to pump-and-dump schemes.
In a stunning investigative revelation, an investigator joined one of these scam WhatsApp groups and received an unsolicited phone call from a scammer. The caller, lacking proficiency in English, used artificial intelligence to alter her voice to sound British while claiming to be in “Arkansas.” When quizzed about Arkansas’s capital, she was unable to answer—a clear indication of the dubious practices at play.
Example of a Fraudulent Investment Ad on Facebook
Understanding Pump-and-Dump Schemes
Pump-and-dump schemes involve scammers pumping up the prices of specific stocks through recommendations. These stocks are often heavily marketed, enticing users to buy in. Once the price is inflated, the perpetrators quickly sell off their shares, resulting in a steep decline in stock value—leaving unsuspecting buyers with substantial financial losses. It’s crucial to note that pump-and-dump schemes are illegal and represent clear cases of securities fraud.
Why Meta Must Step Up Its Game
Despite Meta’s claims of employing automated systems and periodic human reviews, fraudsters have devised tactics to circumvent these defenses. Alarmingly, the New York Attorney General’s office has continued to receive reports of scam ads long after filing complaints with Meta.
This bipartisan coalition is pressing Meta to reassess its advertising review mechanisms thoroughly. The coalition’s letter advocates for robust preventative strategies, including enhanced scrutiny of advertisers and rigorous human oversight of investment-related advertisements prior to their launch. The attorneys general have made it clear: if Meta cannot effectively tackle these pernicious scams, they should halt all investment advertisements altogether.
Joining Attorney General Tong in this critical initiative are attorneys general from states such as Alaska, Arizona, California, New York, and many others, uniting in their call for stronger consumer protection.
Stay Connected
For updates, follow Attorney General William Tong on @Twitter or visit the CT Attorney General Facebook Page.
Media Inquiries:
Elizabeth Benton
[email protected]
Consumer Inquiries:
860-808-5318
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