Instagram Users at Center of New Investment Fraud Scheme
A popular social media application is a new tool for fraudsters trying to rip off would be investors, according to a British watchdog group.
Action Fraud says it has seen a spike in get-rich quick schemes on Instagram, the photo sharing app owned by Facebook. Fraudsters regularly use promises of big profits in mere hours and professional looking images to encourage Instagrammers to send more than $600 in initial investments, according to the United Kingdom based group.
Action Fraud said it received more than 350 reports of this kind of fraud, totaling more than $3.2 million in losses, in a matter of four months. Many of the victims are between the ages of 20 and 30.
“Opportunistic fraudsters are taking advantage of unsuspecting victims who are going about their day-to-day lives on social media,” Action Fraud Inspector Paul Carroll said in a warning posted on the group’s website. “It’s vital that you follow the simple steps below to make sure you don’t fall victim to this fraud.”
Action Fraud is encouraging Instagram users to be skeptical of investment opportunities that sound too good to be true. Users should ignore requests to transfer money from anyone that they do not know and trust. They should also think twice about anything that involves an advance payment or requires the user to sign a contract immediately.
Fighting Investment Fraud
The Insta investment schemes are just one type of scam lurking on popular social media sites.
Fake ads, for example, often target users with products that arrive looking little if anything like what the person thought he or she was buying. Meanwhile, the failed Fyre Festival is a good example of how so-called “influencers” often push shoddy events and products that they know little or nothing about.
The good news is that people who have been victimized by investment scams have the right to seek compensation from those responsible. That includes by filing a class action lawsuit for money damages related to the fraud. This is a particularly effective option in cases in which a number of people have been hurt by the same or similar schemes. It allows people to leverage their individual claims and share the risk.
Consult an Investment Fraud Attorney Today
If you have been taken advantage of by phony investment opportunities online, you should seek the advice of an experienced investment fraud attorney.
At Glancy Prongay & Murray, we have been representing clients victimized by investment fraud and for three decades. Our class action attorneys have a strong track record of success and we have been recognized as one of the leading plaintiff’s law firms in the country. We take many cases on a variety of contingency fee arrangements, which allows us to share the risk with the people that we represent.
Call us at (310) 201-9150 or contact us online to speak with an investment fraud attorney.