Lures Unsuspecting People with Social Media Ads, Messaging Apps
The FBI warns the public about criminals targeting U.S. stock investors through social media platforms and messaging service applications (apps). The scheme, known as a “ramp-and-dump” stock manipulation, targets U.S. investors through online engagement, often via social media advertisements or messages promoting an “investment club” of fellow investors, some of which may be bots or fake accounts. These promotions typically direct victims to secure messaging apps where the group operates.
To appear credible, perpetrators may impersonate legitimate brokerage firms or well-known stock analysts. They secretly control a large volume of a low-priced stock and coordinate efforts to inflate its price (“ramp up“) by encouraging investment club members to purchase shares over several weeks or months. Once the price is artificially elevated, the criminals sell off (“dump“) their shares at a profit, leaving unsuspecting investors with significant losses as the stock value collapses.
So far in 2025, the FBI has seen at least a 300 percent increase in victim complaints referencing ramp-and-dump stock fraud from 2024. Investors can protect themselves from potential ramp-and-dump schemes by recognizing the following indicators:
- 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
- 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
The FBI said that, if anyone requests personal information, access to financial account(s), or offers a financial benefit in exchange for sharing information or opening an account, this should be considered to be a red flag; the investor’s information could be used to open an account through which another party can engage in manipulative activity.
The FBI requests investors who suspect they have been victimized by investment fraud to report the incident to the FBI IC3 at www.ic3.gov as soon as possible.