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Hundreds of misleading investment ads found on Facebook and Instagram

Hundreds of misleading investment ads found on Facebook and Instagram
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Written By:
Posted:
May 3, 2023
Updated:
September 25, 2023

Hundreds of misleading and potentially fraudulent adverts for financial services including investments are being shown to users of Meta sites Facebook and Instagram.

An investigation has found — several examples — of misleading — investment adverts which could lure people into parting (and potentially losing) their money.

Of 1,064 adverts, 484 found on the Meta platform, which owns the two social media companies, were investment related. Half were for investment products and the rest were offering investment-related services like tips, training and advice.

In most cases, the products that were advertised are unregulated and 12% of investment product adverts were unclear and offered high returns without clarifying how an investor would get these.

One in four, 25%, of the investment products advertised were to do with property while 22% were for cryptocurrencies and non-fungible tokens (NFTs), according to the investigation by consumer group Which? and Demos Consulting.

The companies used human and automated analysis to scan Meta’s advert library for adverts with certain red flags, such as promising guaranteed returns on investments.

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"These red flags could mean people are led into making risky investment choices. In the worst case scenario, they could become a victim of fraud."
-   Which? Magazine

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Potential scam adverts use the ‘Tesler’ name


39
Unique ‘Tesler’ adverts found


23
Adverts with five or more red flags

The investigation uncovered 39 unique adverts mentioning Tesler. Which? said there were multiple indications that they were probably scams and it was also unable to find any evidence of a real, registered company called ‘Tesler Investments’.

Criminals often use well-known names, or versions of them, to mislead victims into parting with their cash.
The Financial Conduct Authority (FCA) has previously issued a warning about a scam investment company using the brand name Tesler and impersonating a regulated trading company based in the UK.

A researcher for the consumer group clicked on a Tesler advert and was prompted to enter their contact details. Shortly after they were called by a representative and pressured to set up a trading account.

A Meta spokesperson said: “We removed a number of the ads brought to our attention for breaking our rules, many of which had already been disabled prior to being contacted by Which?.

Potential scam adverts use the ‘Tesler’ name

The investigation uncovered 39 unique adverts mentioning Tesler. Which? said there were multiple indications that they were probably scams and it was also unable to find any evidence of a real, registered company called ‘Tesler Investments’.

Criminals often use well-known names, or versions of them, to mislead victims into parting with their cash.
The Financial Conduct Authority (FCA) has previously issued a warning about a scam investment company using the brand name Tesler and impersonating a regulated trading company based in the UK.

A researcher for the consumer group clicked on a Tesler advert and was prompted to enter their contact details. Shortly after they were called by a representative and pressured to set up a trading account.

A Meta spokesperson said: “We removed a number of the ads brought to our attention for breaking our rules, many of which had already been disabled prior to being contacted by Which?.

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