Attorney General Bird Urges Meta to Curb Investment Scams

DES MOINES— Today, Iowa Attorney General Brenna Bird joined forty-two other state attorneys general in calling on Meta, the parent company of Facebook, What’s App, and Instagram, to take stronger action to prevent investment scams occurring through Facebook.   

Scammers use a combination of Facebook advertisements and What’s App groups to lure users into fraudulent investment schemes. The ads often include images of well-known financial advisors. Users are urged to join a What’s App group where they are told to buy scammy assets—whether penny stocks, crypto assets, or something else. When the victims purchase those assets, the prices go up, the scammers sell their shares at the inflated price, and the value of the stocks plummet. Meta facilitates this scam, known as a rug-pull or pump-and-dump, by allowing the criminals behind the scheme to buy ads that promote the scam. 

This scam could cause victims to lose a substantial amount of money, maybe even their entire life savings. 

The attorneys general are raising concerns that Meta’s current policies to protect users from these schemes are not effective enough. Unlike the difficult job of content moderation, Meta is being paid to promote the scams on Facebook. Investigators continue to see the ads months after they have been reported as scams. Stronger measures must be taken.  

“Meta has a responsibility to its users to remove thieves who exploit innocent people,” said Attorney General Bird. “It must vet advertisers and ensure its platforms aren’t being used to facilitate fraud. If you think you’ve been scammed by one of these ads, call my office at 1-888-777-4590.” 

Read full letter here. 

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For More Information:

Zach Hoffman 

zach.hoffman@ag.iowa.gov