New Jersey officials are warning residents about a growing wave of investment scams spreading across social media, with particular concern about the role of WhatsApp in facilitating direct, hard-to-detect fraud.
Attorney General Jennifer Davenport and the state’s Bureau of Securities said Wednesday that scammers are increasingly using platforms owned by Meta Platforms — including Facebook, Instagram and WhatsApp — to target potential victims with increasingly sophisticated schemes. WhatsApp has become especially attractive to fraudsters because it allows them to move conversations into private, encrypted channels where they can build trust and apply pressure without public scrutiny.
The scams often begin with ads or posts on Facebook or Instagram, sometimes featuring deepfake videos or fabricated endorsements, before shifting to one-on-one conversations on WhatsApp. From there, fraudsters attempt to cultivate relationships with victims over time, presenting themselves as financial experts or insiders and eventually directing them to fake investment platforms.
Authorities say these schemes take several forms, including “pump and dump” operations that hype stocks or cryptocurrencies before collapsing, long-term confidence scams that rely on sustained messaging to gain trust, and fraudulent cryptocurrency pitches promising high returns or exclusive access. Once victims send money, it is often quickly siphoned off, leaving little chance of recovery.
“We are concerned that Meta’s social media platforms are increasingly becoming a hotspot for investment scams that swindle New Jerseyans out of their hard-earned money,” Davenport said, noting that the ease and scale of social media outreach make it easier than ever for bad actors to reach large audiences quickly.
State officials emphasized that urgency is a central tactic, particularly in WhatsApp conversations where scammers push targets to act immediately before an opportunity disappears. Victims who lose money may later be contacted by individuals claiming to be recovery specialists or attorneys who promise to retrieve lost funds for a fee — a tactic authorities warn can be a second layer of fraud.
