Scammers targeting the cryptocurrency sector are becoming more creative as adoption increases. US regulators have warned of a new category of cryptocurrency scams in which fraudsters are targeting cryptocurrency investors posing as professors and academics.
Social networking platforms such as Facebook, WhatsApp and Telegram are exploited by cybercriminals to find and communicate with potential victims and hack into their encrypted resources using sophisticated methods.
The Washington Department of State’s Securities Division of Financial Institutions (DFI) is seeing an increase in complaints indicating new types of fraud. According to the DFI, fraudsters posing as professors and heads of business schools and wealth institutions are contacting people offering courses related to the cryptocurrency sector.
The DFI said: “Alleged fraud typically begins by placing investors in WhatsApp or Telegram groups.
Some scammers are experimenting by offering their victims some crypto tokens that they can “deposit” on platforms promoted by these malicious actors, promising high profits. Some companies also offer informal credit and loan facilities through messaging apps to help victims with their planned investments in high-value cryptocurrencies, cryptocurrencies, NFTs or altcoins.
In some cases, fraudsters posed as other “real investors” in WhatsApp and Telegram groups used to communicate with victims, the DFI said.
“If the investor attempts to repay the loan, the company will inform him that his account will be blocked until we can obtain the loan with external funds,” DFI added.
It is currently unclear how many victims were affected by this scam. The DFI also did not disclose how many complaints it has received on the issue in recent months.
Meanwhile, scammers are becoming increasingly sophisticated in targeting cryptocurrency victims. Many design mobile apps and websites that look authentic to convince unsuspecting victims to take part in their schemes.
“These companies may post various regulatory and government agency documents on their websites to give investors the impression of being legitimate,” the regulator said. Investors are urged to verify the legitimacy of any cryptocurrency-related website or app. I decide to go for it.
In June, the US Federal Trade Commission (FTC) warned the crypto industry about the rise in romance scams. In romance scams, scammers lure people into investing in cryptocurrencies by pretending to be looking for a romantic relationship.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
