New Hampshire Residents Advised to Remain Vigilant Against Investment Scams on Social Media

These deceptive practices utilize fraudulent advertisements, impersonations of prominent individuals, and advanced deepfake technology to deceive users into misplacing their funds.

New Hampshire's Attorney General, John M. Formella, has alerted the public regarding an increase in elaborate investment frauds being propagated through social media channels. These deceptive practices utilize fraudulent advertisements, impersonations of prominent individuals, and advanced deepfake technology to deceive users into misplacing their funds. 

The New Hampshire Department of Justice highlighted that offenders are predominantly targeting social media platforms managed by Meta, which encompasses Facebook, Instagram, and WhatsApp. The scams are structured to lure individuals with enticing investment offers, making both confidence schemes and pump-and-dump tactics prevalent. 

In pump-and-dump schemes, individuals frequently receive enticing promotions to invest in inexpensive stocks or cryptocurrency. Victims are then coaxed into exclusive chat groups where they encounter aggressive and misleading endorsement attempts aimed at artificially boosting the stock’s value. Once the investments peak, the fraudsters quickly offload their shares, leaving their victims facing significant financial losses. Often, these misleading ads misuse the likeness of recognizable figures like Cathie Wood, Joe Kernen, or Kevin O’Leary without their permission.

Confidence scams typically involve a relationship-building process where scammers cultivate trust with victims. In these situations, potential victims often find realistic but fake investment platforms that may allow minimal initial withdrawal, giving a semblance of legitimacy. Ultimately, these avenues lead to blocked access and requests for further payments, leaving many individuals in the lurch.

To combat this threat, Formella emphasized that credible investment professionals seldom promote specific opportunities via social media. Residents are urged to exercise caution when approached with unsolicited propositions and to question any offers demanding immediate action. Additionally, the Attorney General's Consumer Protection and Antitrust Bureau has advised the public to be wary of conversations shifting to encrypted messaging services like Telegram, where control is more relaxed and thus increases the risk of fraud.

Warning signs to be mindful of include promises of guaranteed returns without risk, urgent calls to invest, and endorsements from celebrities. Thoroughly verifying credentials through FINRA, examining investment possibilities, and consulting well-regarded financial advisors are advisable steps before making any financial commitments. 

Recovering losses related to cryptocurrency investments can often be challenging and, in many cases, unfeasible. Those who suspect they have fallen victim to such scams should promptly contact the state’s Consumer Protection and Antitrust Bureau or the FBI Internet Crime Complaint Center. Additionally, residents should be wary of “asset recovery” services that request upfront fees, as these too may be fraudulent.