Who: The SEC handles stock and securities fraud, including pump-and-dump schemes.
When to use: Use when the scam involved stocks or investment recommendations.
What to prepare:
- Group or platform name
- What was recommended
- Amount lost
- Screenshots
Category: Financial & banking
Pump-and-dump & fake guru investment groups
How it often plays out
A Facebook or Instagram ad invites retail investors to join a “free” WhatsApp or Telegram group for stock or crypto tips. In the group, one person is introduced as a “professor” or financial expert; other members—actually scammers—praise him and share stories of getting rich by following his picks. The “professor” recommends specific stocks or coins. When people buy, the scammers (who already hold the asset) sell into the rally and disappear. The price crashes; victims lose money. Sometimes the group also sends people to a fake trading platform where deposits are stolen. The SEC and CFTC have warned about these messaging-app schemes.
How to spot it
- Ads on Facebook, Instagram, or other social media inviting you to a WhatsApp or Telegram group for “exclusive” stock or crypto tips.
- A “professor” or “expert” in the group who is praised by many other members; those members may be fake accounts run by the same scammers.
- Pressure to buy a specific stock or coin “before it goes up”; the promoters often already hold it and plan to sell (pump and dump).
- Links to a trading platform you have never heard of, or that is not registered with the SEC or CFTC.
Do's and don'ts
Do
- Verify any trading platform with the SEC or CFTC before investing.
- Save group links, screenshots, expert names, platform URLs, and transaction details.
- Report to the SEC, FTC, and IC3 with wallet or broker details if you invested.
Don't
- Invest based on tips from private WhatsApp or Telegram groups.
- Send more money to unlock or withdraw funds.
- Trust a professor or expert promoted only inside the group.
Summary & what to do
Scammers use Facebook ads to draw you into WhatsApp or Telegram “investment clubs.” A fake “expert” or “professor” and fake members push stock or crypto picks in a pump-and-dump: they pump the price by getting you to buy, then dump their holdings and leave you with losses. They may also send you to a fake platform that steals your money. Report to the SEC, FTC, and IC3.
What to do right now
- Do not invest based on tips from private WhatsApp or Telegram groups. Verify any platform with the SEC (investments) or CFTC (commodities).
- Stop sending money. Save group links, screenshots, “expert” names, platform URLs, and any transaction details.
- Report to the SEC (stock/securities fraud), FTC, and IC3 (internet crime). Include wallet addresses or broker details if you invested.
Where to report
Who: The FTC collects reports of investment and consumer fraud.
When to use: Use for any consumer loss from the scheme.
What to prepare:
- What happened
- Amount lost
- Platform or group
FTC ReportFraud~5 min
Who: The FBI's IC3 handles internet crime including fake platforms and crypto fraud.
When to use: Use when the scam was online or involved a fake website or crypto.
What to prepare:
- URLs
- Wallet addresses
- Chat or group info
- Amount lost
Go to IC3~10 min