NEW YORK – The North American Securities Administrators Association is warning investors to beware of con artists using social networking to promote online investment scams.
HOW IT SPREADS
The association says con artists are using Facebook, Twitter, LinkedIn and even dating sites like eHarmony to push online investment scams.
First, they connect with individuals and groups, and then they take advantage of the nature of social networking to make their pitch. Because the con artists gain access to the personal information their online “friends” and connections have posted, it’s often easy to build up trust quickly, NASAA said.
And the scam can spread rapidly as the crook gains access to the friends and colleagues of the initial target.