WASHINGTON, DC—The FBI is issuing a public warning about a significant increase in “ramp-and-dump” stock manipulation schemes targeting U.S. investors through social media platforms and messaging applications. The agency reports a 300% surge in victim complaints related to this type of fraud in 2025 compared to last year.
These sophisticated schemes often lure investors into what appear to be legitimate “investment clubs” promoted through social media advertisements or direct messages. Perpetrators, who may use fake accounts or bots, then direct victims to secure messaging apps where the fraudulent activity is orchestrated.
To gain credibility, the criminals often impersonate established brokerage firms or well-known stock analysts. They secretly acquire a large volume of low-priced stock, then coordinate efforts within the “investment club” to artificially inflate its price by encouraging members to purchase shares over several weeks or months. Once the stock’s price is artificially high, the fraudsters “dump” their shares for a profit, leaving unsuspecting investors with substantial losses as the stock value plummets.
The FBI’s Internet Crime Complaint Center (IC3) has confirmed a sharp increase in complaints regarding investment club fraud and ramp-and-dump schemes.
The FBI advises investors to be vigilant and recognize the following red flags:
- Unsolicited investment tips received via “accidental” text messages or social media advertisements linking to online investment clubs, particularly those hosted on secure messaging apps.
- Claims from well-known financial advisors or wealth managers offering exclusive stock recommendations through these online clubs.
- Pressure to act quickly based on a supposed market-moving event, such as a company breakthrough, new technology, or government approval.
- Urgent pitches to purchase low-priced stocks in new or emerging companies, often paired with promises of dramatic price increases or guarantees to cover any investor losses.
The FBI also cautions that any request for personal information, access to financial accounts, or offers of financial benefits in exchange for sharing information or opening an account should be considered a red flag, as this information could be used for manipulative activities.
The FBI urges anyone who suspects they have been victimized by investment fraud to report the incident to the FBI IC3 at https://www.ic3.gov as soon as possible.
