Santa Monica Police Warn: Investment Scams on Social Media Targeting Stocks and Crypto

Santa Monica Police warn of social media investment scams pushing fake stocks and cryptocurrencies. Learn red flags, protection tips, and how to report now.

On Tuesday, April 14, the Santa Monica Police Department (SMPD) issued a Facebook alert warning residents about a rise in investment scams circulating on social media. According to the post, scammers are steering people toward fake stocks and cryptocurrencies by portraying them as once-in-a-lifetime opportunities that “can’t be missed.” The advisory, summarized by Canyon News, urges the public to stay vigilant and verify offers before investing.

These social media investment scams can be convincing. Scammers use polished profiles, fabricated success stories, and fake endorsements to build trust quickly. Often they contact victims through private messages, sponsored posts, or comment replies, promising guaranteed returns or early access to an exclusive token sale. Because cryptocurrencies and online trading platforms are familiar to many, fake stocks and crypto schemes can appear especially persuasive to first-time investors.

Know the red flags: unsolicited investment offers, pressure to act immediately, promises of guaranteed returns, requests for funds via unconventional methods (gift cards, wire transfers, or direct crypto wallets), and links that lead to imitation trading platforms. Fake endorsements from public figures or doctored screenshots of account balances are also common tactics.

How to protect yourself: never invest based on a social media message alone. Research the company or token using official websites and reputable financial news sources. Check registration and licensing with regulators, such as the U.S. Securities and Exchange Commission (SEC) for investment firms. Use two-factor authentication on accounts, avoid clicking suspicious links, and be wary of high-pressure sales tactics.

If you suspect a scam or think you’ve been targeted, stop all transactions immediately and preserve any messages, screenshots, and payment records. Contact your bank or payment provider to attempt to halt transfers, and report the incident to local law enforcement. File complaints with the Federal Trade Commission (FTC) and, if applicable, the SEC. You can also report fraudulent profiles to the social media platform so they can remove the scam accounts.

SMPD’s alert is a timely reminder that social media can be a vector for investment fraud. By recognizing the warning signs, verifying offers independently, and reporting suspicious activity, residents can reduce their risk and help law enforcement disrupt these schemes.

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