Fraudsters are using social media (like X, formerly Twitter) and messaging apps (like WhatsApp and Telegram) to promote fake investment opportunities. They often impersonate financial professionals, advisor firms, or public figures to appear credible, luring victims into so-called “exclusive investor groups.”

Once inside the group, scammers pressure investors to open accounts at specific broker-dealers and follow their stock trading advice. These schemes are typically “pump-and-dump” scams, where the fraudsters manipulate stock prices for profit, leaving the unsuspecting investors with losses. Some even charge fees while falsely claiming to protect against losses.

How to Protect Yourself

• Be skeptical of unexpected fees, urgent investment offers and demands for immediate transactions.
• Verify credentials before engaging with anyone promoting stocks.
• Avoid clicking links or calling numbers in suspicious messages.
• Strengthen security by enabling privacy settings on messaging apps to prevent being added to unknown group chats.

Report Fraud and Stay Informed

• Report suspicious activity to your team at WNY Asset Management
• Visit SchwabSafe https://www.schwab.com/schwabsafe for phishing prevention tips.
• Report fraudulent messages to the platform where they appeared

By staying vigilant and reporting scams, you help protect yourself and others from fraud.