The Better Business Bureau on Tuesday warned investors of an online social media scam surging in popularity that involves fraudulent investments.

Officials said scammers are using the anonymity of sites such as Facebook and Twitter to build relationships with potential investors. Fraudsters then attempt to sell bogus investments to the targets, sometimes duping them out of thousands of dollars.

BBB officials said the ability to access personal information such as names, birth dates and addresses "allows scammers to personalize and target their pitch, and over time build trust with potential victims."

But the bureau warned that investors are not the only target for scammers. Promoters of the investment scams use online pitches to recruit people to sell illegal or inappropriate investments, officials said. Authorities are worried that misleading and untrue information could falsely inflate the value of a stock.

The Texas State Securities Board also warned of the increasingly-popular scam in September of 2011.

“Today, crooks are increasingly logging on to find investors,” Securities Commissioner Benette L. Zivley said. “Online networking and media sites make it easier to establish trust and credibility with investors, and then launch an investment scheme.”

The BBB released several tips to protect people from phony social media investment opportunities:

• Be wary of unknown “friends.” If approached with an investment opportunity on a social media site, be cautious and ask questions. Don’t make any quick decisions or rush to judgment just because you are “friends” with or follow someone on a social media site.
• Protect your personal information. Check your privacy settings so you can control who can see your profile and exercise good judgment when posting personal information.
• Avoid high-pressured pitches. Do not feel pressured to “act now.” Take time to research any possible investment yourself. Any legitimate company will give you the time you need to make the decision best for you.
• Beware of testimonials from other investors. Scam artists will frequently pay out high returns to early investors using money from later investors, otherwise known as a Ponzi scheme. Fraud aimed at groups of people with similar interests is called affinity fraud.
• Confirm registration and licensing. Before investing any money, make sure the investment advisor or representative is registered and licensed. You can reference the Central Registration Depository here.