BlackRock warns users of ongoing scams targeting its ETF investors. The world’s largest asset manager in New York City highlighted in an official blog post that fraudsters fake-paint company executives’ profiles on social media platforms to deceive users. To confront these scams, BlackRock issued several precautions for investors to exercise.
Since launching the Ethereum ETF on Jul. 23, BlackRock has attracted hefty inflows of investments into the platform. Similarly, considering the enhanced ETF investments, BlackRock issued cautions immediately after noticing the fraud activities targeting its iShares Bitcoin and Ether ETFs.
Currently holding $10.3 trillion under management, the firm warned users to avoid BlockRock’s interactions via social media channels that demand payments to train and invest.
Since its launch on Jan. 11, BlackRock’s iShares Bitcoin Investment Trust (IBIT) has attracted a $19.7 billion investment fund. The company alone holds more funds than nine other Bitcoin Spot ETFs collectively approved by the U.S.
BlackRock advises not to interact with its social media offerings
Scammers use WhatsApp and Telegram to target innocent victims. They convince users to trust them by using fake documents, prospectuses, application forms, and emails that look real. They promise high returns by offering fake training sessions and investments.
However, BlackRock affirmed on its website that its officials do not reach out to investors via social platforms and never demand funds directly. Conversely, scammers create a sense of urgency in the chats to make users invest quickly. To trick users, scammers could even generate domain names and emails similar to genuine companies, BlackRock said.
Furthermore, the investment firm highlighted another fraud scheme, Rebuild Ukraine, targeting ETF investors. The asset management goliath said criminals invite users to participate and register in the fake project to drain funds. This campaign interacts with users through multiple emails and domains that seem legitimate BlackRock accounts. These emails are subject to change consistently.
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