FBI Alerts Americans About Potential Risks on Social Media and Messaging Platforms - Crucial Information to Take Note Of
The FBI has issued a public service advisory (I-070325-PSA) to warn U.S. stock investors about the rising threat of ramp-and-dump stock fraud. The advisory comes in response to a reported 300% increase in victim complaints regarding this manipulation scheme in 2025 compared to 2024.
Investors are urged to be vigilant against unsolicited investment tips, urgent and extraordinary promises, and requests for sensitive information as red flags of ramp-and-dump fraud. These indicators highlight the typical steps fraudsters take to lure investors into buying artificially inflated stock before they "dump" their shares for a profit, leaving others with losses as the stock price collapses.
The fraud is initiated through social media platforms promoting investment clubs, many of which are found to be fake accounts operated by bots. These clubs often host on secure messaging apps, and fraudsters may impersonate legitimate brokerage firms or well-known stock analysts to create an air of respectability and trust.
The aim of the fraud is to get investment club members to purchase shares over weeks or months, inflating the price (the ramp). Fraudsters control a relatively large volume of relatively low-priced stocks, and they use urgent pitches to purchase these stocks, often accompanied by promises of dramatic price increases or guarantees to cover any investor losses.
The FBI recommends that investors be aware of pressure to act quickly based on a supposed market-moving event. Fraudsters may claim that a company breakthrough, new technology, or government approval is imminent, creating a sense of urgency. They may also claim to have exclusive stock recommendations from well-known financial advisors or wealth managers within these online clubs to appear credible.
Investors should be cautious of these tactics and report any such incidents to the FBI Internet Crime Complaint Center at www.ic3.gov as soon as possible. The advisory does not mention any specific stock market or company being targeted by the ramp-and-dump fraudsters, so investors are encouraged to be cautious regardless of the investment opportunity.
By being aware of these indicators and taking a cautious approach to unsolicited investment opportunities, investors can help protect themselves from falling victim to ramp-and-dump stock fraud.
- The FBI's warning about ramp-and-dump stock fraud advises investors to be cautious on platforms like Twitter and Facebook, especially within investment clubs found on social media or secure messaging apps, as these can be utilized by fraudsters.
- As technology advances, cybersecurity becomes increasingly important, and the recent FBI investment scam warning underscores the need for investors to stay vigilant regarding cybersecurity risks on general-news platforms like these, including cyber threats related to finance and investment schemes.
