NC, SC attorneys general among those urging Meta to crack down on deceptive ‘pump and dump' Facebook ads
RALEIGH, N.C. (QUEEN CITY NEWS) – North Carolina Attorney General Jeff Jackson is among 42 across the country urging Meta to crack down on deceptive ads.
The joint letter claims the social media giant is allowing these so-called 'pump and dump' schemes on Facebook, conning users out of hundreds of millions of dollars.
'Scammers are using fake Facebook ads to trick people into losing millions in scam investments,' said Jackson in a statement. 'It's Meta's job to take these ads down and make sure their platform is as safe as possible for users everywhere. Meta needs to act now.'
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Jackson's office says these ads frequently use images of well-known financial figures like Warren Buffet, Cathie Wood and Elon Musk to make users think they're legitimate. They'll advertise stocks with outrageous returns, free consultations, or offer to give investment advice.
The AGs claim that clicking on the ads directs users to join a WhatsApp group, where the scammers allegedly urge victims to buy penny stocks to rapidly inflate the share prices. After 'pumping up' the price of the stock, the scammers will 'dump' their shares, causing the prices to fall and leaving victims unable to get their money back.
South Carolina AG Alan Wilson is among the co-signers.
The letter cites several examples of victims, including a 65-year-old woman who lost her 401(k) to this scheme after clicking on a Facebook ad for what seemed to be a reputable investment management company. And three victims in South Florida spoke to a news outlet reporting direct losses of more than $85,000 and pointing to two-dozen other victims who lost millions more.
The attorneys general are asking Meta to either strengthen its advertisement review practices to prevent these ads from being shown to Facebook users or remove all investment ads from the platform.
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