Financial Management Authority (FMA) issued an alert over growing crypto scams targeting crypto investors via YouTube channels. The fraudsters, via their channels, present themselves as a trustworthy source of cryptocurrency investment advice and attract victims.
Afterward, the scammers then encourage viewers to join private messaging groups on WhatsApp and Telegram so they can pressure them privately.
Newzealand’s financial watchdog published the notice on Dec. 16 and warned investors to check the platform’s legitimacy on the Financial Service Provider Register (FSPR) before investing their hard-earned money.
In case a user falls victim to a fraud scheme and becomes aware of that lately, the authority suggests the victim block all contacts of the fraudsters on his device, report the issue to the financial authority, and request the bank to reverse the transaction.
Crypto scams follow a calculated strategy to trick investors
Once users enter private chat groups, the operators impersonating themselves as investment experts direct investors to fraudulent trading platforms that look original. Strategically, the fake crypto platforms ask users to first invest a small amount to build trust.
As a return on investment (ROI), these platforms present fake gains to make users bring larger investments. However, whenever an investor tries to extract his funds, the scammers ask him to deposit an additional withdrawal fee that never works.
In the latest warning, FMA has flagged 40 crypto platforms linked with fraud activities. The list includes bi-investments.com, phoenix-trades.com, bricsinvestlimited.com, binaryinv.ltd, binaryinvestments.ltd. Moreover, tradesmartsignals.com, drettcapitals.com, fibotracemarket.com, phoenixtradesinc.com, bdswisstrades.com and global-throne.org are a few other fake companies the authority is aware of.
Fraudsters opt Telegram and WhatsApp to pressure targets privately
As private messaging apps like WhatsApp and Telegram provide direct access to communication with users, crypto scammers have been increasingly using these social media apps to trap users. According to a recent survey in which 631 traders participated, 60.9% of investors have reported financial losses while falling victim to trading scams on Telegram.
Likewise, the survey reported the loss rate on WhatsApp at 59.06%, Facebook at 56.2% and 51.8% for the Instagram. LinkedIn, a platform known as the professional’s user base, records financial loss rates at 43.7%, while the X platform (previously known as Twitter) poses the number at 45.4%.
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