Michigan Attorney General Dana Nessel issued an investor alert on Apr. 9, warning residents about a rise in fraudulent investment schemes appearing across Meta platforms such as Facebook, Instagram, and WhatsApp. The alert highlights the use of deceptive advertisements and deepfake technology by scammers to target individuals with pump and dump scams, confidence scams, and fraudulent cryptocurrency offers.
The announcement matters because these scams are becoming more sophisticated and widespread, putting Michigan residents’ savings at risk. Nessel said that social media is increasingly used for fraudulent ads, making it difficult for people to distinguish between legitimate investments and complex scams.
“Social media has become a breeding ground for fraudulent ads, making it hard to separate legitimate investments from sophisticated scams,” said Attorney General Nessel. “By recognizing the red flags and staying vigilant, you can help protect your personal information and savings.”
The attorney general’s office described how pump and dump schemes typically lure victims into groups where they are convinced to invest in certain stocks or cryptocurrencies. Scammers use recognizable figures without permission in their advertisements before moving conversations onto encrypted apps like WhatsApp or Telegram. Confidence scams involve fraudsters building trust with victims before guiding them through fake investment platforms designed to drain their funds.
Nessel provided several tips for avoiding these traps: be skeptical of promises of guaranteed returns; watch out for high-pressure tactics; verify credentials using tools like FINRA’s BrokerCheck; look out for spelling errors in communications; consult trusted advisors before investing; beware of deepfakes or AI-generated videos featuring celebrities endorsing investments; keep social media profiles private; never share sensitive information online; and be cautious if approached by so-called asset recovery specialists after losing money.
Anyone who believes they have been targeted is encouraged to report incidents to the Federal Trade Commission or file a complaint with the Michigan Department of Attorney General Consumer Protection Team.
According to the official website, the Michigan Department of Attorney General advances social efforts through actions against human trafficking and support for vulnerable populations. The department also focuses on serving Michigan residents through public service initiatives designed for protection according to its official website. Dana Nessel serves as Michigan’s 54th attorney general according to official records. The department operates statewide with authority aimed at safeguarding all residents according to its official website.
In recent years, policy efforts included drafting laws such as Clean Slate in 2019 which expanded expungement opportunities as reported by the department.