Bank of Ireland Warns of 'Pump and Dump' Scams on Meta Platforms Amid Public Distrust in Social Media Fraud Protection

Bank of Ireland has issued a public warning about ‘pump and dump’ investment scams proliferating across Meta-owned platforms.

The alert follows findings from the latest research commissioned by the bank, which revealed widespread public distrust of social media companies. 

According to the research:

• 69% of users do not trust social platforms to protect them from fraud
• 73% distrust the ads they see on these platforms
• 91% believe platforms should be banned from profiting off fraudulent ads
• 90% say financial advertisers should be required to prove their legitimacy

The study also found that 86% of users who encountered fraudulent content saw it on Meta platforms. Broader concerns persist, with 83% of respondents viewing fraud as a major societal issue and 76% expressing caution when shopping online due to scam risks.

Bank of Ireland highlighted a specific threat: WhatsApp-based ‘pump and dump’ schemes. Fraudsters lure victims through fake investment ads, inviting them to join WhatsApp groups (or Telegram, Discord, etc.) where they pose as financial experts. They promote specific stocks by spreading misleading information, driving up prices through coordinated buying. Once inflated, the scammers sell off their holdings, causing a crash that leaves victims with devalued assets. The groups are then deleted or abandoned, and the scheme is repeated elsewhere.

To combat rising fraud, the bank has launched a new campaign titled ‘Not all social is social’, aimed at raising awareness of scams originating on social media and protecting consumers’ financial well-being.

Bank of Ireland urges anyone who suspects they’ve been targeted to contact their bank immediately to help stop the fraud and recover funds.

Examples of financial scams provided by Bank of Ireland

In early July, the FBI issued a public alert warning of a surge in ‘ramp-and-dump’ stock manipulation schemes, often disguised as online ‘investment clubs’ operating across social media and messaging platforms.