FINRA Sees Spike in ‘Investment Group’ Frauds on Social Media
January 23, 2024 by Melanie Waddell
The Financial Industry Regulatory Authority says it’s seeing a “significant spike” in investor complaints of recommendations made by fraudulent “investment groups” promoted through social media channels.
Complaints received by FINRA and posted on social media “describe bad actors, posing as registered investment advisers, who initially advertise ‘stock investment groups’ on Instagram and other social media channels and then turn to encrypted group chats on WhatsApp to communicate with interested investors and pitch investments.”
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