Maryland AG warns social media users of investment scams

Todd Karpovich, The Baltimore Sun on Apr 7, 2026

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BALTIMORE — Maryland Attorney General Anthony G. Brown is warning residents about a surge in fraudulent investment schemes spreading across social media platforms, where scammers are increasingly using deceptive advertising and artificial intelligence to steal money from unsuspecting users.

The schemes are proliferating on platforms owned by Meta, including Facebook, Instagram and WhatsApp, according to an alert issued by Brown’s office. Officials say the scams often rely on “deepfake” videos, fake testimonials and high-pressure tactics to lure people into risky or entirely fictitious investments.

“These scams are designed to look legitimate and exploit trust,” Brown said in a statement, urging consumers to carefully scrutinize online investment opportunities.

Authorities say the frauds take several forms, including so-called “pump and dump” schemes, confidence scams and bogus cryptocurrency investments. In many cases, victims are persuaded to invest increasingly large sums of money before discovering the operation is a sham.

In a typical pump-and-dump scheme, scammers use online ads featuring recognizable financial figures — often without their permission — to promote exclusive investment groups or guaranteed returns. After drawing users in, fraudsters encourage them to move conversations off public platforms and onto encrypted messaging apps, where oversight is limited.

Victims are then placed in group chats and fed what appears to be expert advice, along with fabricated success stories. Early investments may appear profitable, building trust and encouraging larger contributions. Once enough money has been invested, scammers sell off their holdings, causing prices to collapse and leaving victims with steep losses.

Confidence scams follow a similar trajectory but rely more heavily on personal relationships. Fraudsters may pose as financial advisors, cultivating trust over days or weeks while guiding victims to professional-looking — but fake — trading platforms. Initial deposits may show significant gains, and in some cases, victims are allowed to withdraw small amounts to reinforce the illusion of legitimacy.

Over time, victims are persuaded to invest more, sometimes borrowing money from friends or family. When they attempt to withdraw larger sums, they are told to pay additional fees or taxes. Even after those payments are made, the funds are never returned and the scammers disappear.

State officials are urging residents to be sceptical of any investment promoted on social media, particularly those that promise guaranteed returns or require immediate action. Legitimate broker-dealers and financial advisers rarely advertise specific investment strategies on these platforms, officials said.

Brown’s office outlined several warning signs, including celebrity endorsements, requests to move conversations to encrypted apps, and demands for payment in cryptocurrency. Consumers are also advised to independently verify the credentials of anyone offering investment advice and to search for complaints or reports of fraud tied to a company or individual.

The rise of AI-generated “deepfakes” has made scams more convincing, officials said. Videos may appear to show well-known figures endorsing an investment, but subtle inconsistencies — such as mismatched audio or unnatural movements — can signal manipulation.

Residents are also encouraged to protect their personal information by tightening social media privacy settings and avoiding sharing financial details or account access with unknown individuals. Scammers may exploit publicly available information to build credibility or impersonate trusted contacts.

Brown urged anyone who suspects they have been targeted or victimized to report the incident to the Maryland Attorney General’s Securities Division or Consumer Protection Division.

“Taking a moment to verify before investing can make the difference between protecting your savings and losing it,” Brown said.

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