FBI Warns of Ramp-and-Dump Stock Fraud Targeting U.S. Investors Through Online Investment Clubs
WASHINGTON, D.C. – The FBI has issued a nationwide alert warning U.S. investors of a growing stock fraud scheme exploiting social media platforms and secure messaging apps. The deceptive practice, known as a “ramp-and-dump” scheme, has surged dramatically in 2025, with the FBI reporting at least a 300 percent increase in related complaints compared to last year.
According to investigators, criminals are targeting retail investors by promoting fake or misleading “investment clubs” online. These schemes often begin with unsolicited social media advertisements or messages—sometimes disguised as accidental texts—that invite users to join what appear to be legitimate investment groups. Once inside these groups, often hosted on encrypted messaging apps, victims are encouraged to buy low-priced stocks touted as having massive growth potential.
To gain trust, perpetrators may impersonate well-known financial analysts or reputable brokerage firms. In reality, these fraudsters secretly hold large quantities of the targeted stocks and use the clubs to artificially drive up prices. When the stock value has increased significantly due to coordinated purchases, the criminals sell off their shares at a profit—leaving unsuspecting investors with steep losses as prices collapse.
Red Flags to Watch For
The FBI urges investors to remain vigilant and avoid falling for schemes that exhibit the following warning signs:
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Unsolicited investment invitations through text or social media, especially those linking to investment clubs on secure messaging platforms;
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Claims of exclusive stock tips from high-profile financial advisors or analysts;
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Pressure to act quickly based on supposed insider information or imminent market-changing events;
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Promises of guaranteed returns or offers to reimburse investment losses;
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Requests for personal or financial information as a condition for membership or investment.
“If anyone is asking for your personal data, access to your brokerage account, or offering financial rewards for information, it’s a serious red flag,” the FBI emphasized.
How to Report Suspected Fraud
The FBI encourages anyone who believes they may have been targeted or victimized by an investment fraud scheme to file a report immediately through the FBI’s Internet Crime Complaint Center (IC3) at www.ic3.gov. Investigators rely on public tips to identify emerging threats and pursue criminal activity.
As stock scams evolve alongside digital platforms, the FBI continues to stress the importance of skepticism, due diligence, and verifying the credibility of all investment opportunities—especially those originating online.
From the FBI:
Alert Number: I-070325-PSA
Fraudsters Target US Stock Investors through Investment Clubs Accessed on Social Media and Messaging Applications
Recognize and Avoid “Ramp-and-dump” Stock Fraud
So far in 2025, the FBI has seen at least a 300 percent increase in victim complaints referencing ramp-and-dump stock fraud from 2024. Investors can protect themselves from potential ramp-and-dump schemes by recognizing the following indicators:
- Unsolicited investment tips received via “accidental” text messages or social media advertisements linking to online investment clubs, often 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; and,
- 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.
If anyone requests your personal information, access to your financial account(s), or offers a financial benefit in exchange for sharing your information or opening an account, consider this a red flag; your information could be used to open an account through which another party can engage in manipulative activity.
Report Incidents of Investment Fraud
The FBI Internet Crime Complaint Center (IC3) confirms a sharp increase in complaints this past year referencing investment club fraud schemes or ramp-and-dump stock manipulation schemes. The FBI requests investors who suspect they have been victimized by investment fraud to report the incident to the FBI IC3 at www.ic3.gov as soon as possible.
