SANTA MONICA—On Tuesday, April 14, the Santa Monica Police Department issued an alert on its Facebook page about investment scams appearing on social media.
According to the post, the scams involve trying to steer people into investing in fake stocks and cryptocurrencies, which scammers claim are opportunities that can not be missed. There are two common types of investment scams. The first is a pump-and-dump scam, and the second is a confidence scam.
In a pump-and-dump scam, the scammer promotes cheap cryptocurrencies or stocks in group chats, enabling them to make massive financial gains at the cost of their victim. In a confidence scam, the scammer develops a relationship with their mark and convinces their mark to invest in a fake opportunity, and then vanishes with the victim’s money
The Santa Monica Police Department wants citizens to be aware of the signs that an investment offer may be a scam which includes receiving messages asking them to act now. This includes the person offering the investment demanding that money be given to them only in cryptocurrency.
Another sign that an investment offer is a scam is when an individual claims the return is risk-free. These scams sometimes involve using artificial intelligence to create celebrity or influencer investment ads as well as requests to move the conversation to WhatsApp or Telegram.
Residents should investigate any potential offers before investing, including verifying the identities of professionals at https://www.investor.gov.
Private information should not be shared over social media, and they should also not give anyone access to their personal devices.
If anyone is scammed, they should contact either the FBI’s Internet Crime Complaint Center, reports can be submitted through, the website www.ic3.gov. or via the Santa Monica Police Department. Reports of being scammed can also be submitted to a bank. The SMPD is asking for the public to share the details about the scams.
