Social media platforms like WhatsApp, Facebook, and Instagram have become an integral part of many consumers' daily lives, offering spaces to connect, share, and discover new opportunities. However, with the popularity of these platforms also comes a rise in scams targeting unsuspecting users. Among the most prevalent are investment scams, where cyber criminals exploit people’s desire to make quick financial gains.
Luring Victims with Deceptive Advertisements
Investment scammers often pose as stock experts or use the allure of emerging technologies, such as AI-powered tools, to convince consumers that they're selecting the best stocks. They lure victims with enticing phrases like "Expert technical analysis", "Get 1-3 daily bull stock recommendations", and "Find stocks worth investing in".
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While these promises may sound tempting, the reality is far from what is advertised—these ads typically direct victims to fake websites that simulate stock diagnostic tools.
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To receive the full report, victims are urged to contact the so-called 'expert' via WhatsApp or provide their personal number through the ads, giving the scammers direct access to reach out to them.
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Monetizing Victims Through Social Engineering
After initial contact, scammers then add victims to WhatsApp groups, where they impersonate legitimate professionals from renowned investment advisory firms or banks. They use real names and images of actual employees to appear credible, while 'actors' share fake success stories and profit claims to lure victims in. The scammers may also hold evening lectures and trade real stocks to build trust.
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Victims are then encouraged to invest more funds, primarily through cryptocurrency transfers. Initially, small withdrawals are permitted to avoid suspicion. Eventually, victims are asked to pay a "profit trading fee" to withdraw their funds.
Alternatively, the scammers may introduce a program where everyone pools their money into a 'fund' to be invested in the market, claiming that limited slots are quickly filling up. This creates a sense of urgency and a fear of missing out, making it easier for victims to fall for the scam.
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The Typical Kill Chain of an Investment Scam
Development: Scammers create fake advertisements on social media platforms promoting cryptocurrency investments. These ads are often localized in multiple languages to reach a wider, diverse audience.
Access: When victims click on the ad, they’re directed to a fraudulent website and prompted to enter personal details such as their name, email, and phone number.
Contact: After a short time, victims receive messages or calls from scammers posing as 'investment experts', further engaging them in the scam.
Reconnaissance: During their first interaction, the scammer gathers critical information about the victim, such as their interests, job history, and financial background. The scammers may maintain a database or CRM system to track details of the victims, document conversations, and monitor money invested. This may be shared with other members of the scam operation to streamline efforts.
Exfiltrate: In a phone call, the scammer may trick the victim into unknowingly downloading a remote access tool onto their device. This tool is used to remotely gain control of the victim’s bank account during a live session.
Persistence: As the scam progresses, victims may begin to suspect fraud. In response, scammers may escalate their tactics, using hostile phone calls and threats to intimidate the victim into continuing with the scam.
Monetization: Victims are continuously pressured through follow-up calls and messages, urging them to invest additional funds. These calls are designed to build trust while coercing victims into further financial commitments.
Distinguishing Legitimate Investments from Scams
Anyone encountering suspicious ads or ads that impersonate legitimate entities should use the platform's report function to flag them. This helps ensure the platform takes appropriate action to remove harmful content and prevents others from falling victim to investment scams. Below are three tips to help consumers distinguish between genuine and fake investments:
Avoid unrealistic returns on investment: High returns often come with high risks. Consumers should be cautious of investment opportunities that promise exceptionally high returns with minimal risk. For example, stocks generally yield around 10%-12% annually, while bonds average about 5%-6%. If an investment promises returns significantly higher than these market averages, it’s a red flag.
Use secure and regulated platforms: Scammers often create fake platforms or impersonate legitimate ones. Before making any investment, consumers should verify that the platform is genuine and registered with the relevant financial regulatory authorities. This ensures that the investment is safe and secure.
Verify the advertiser: Before trusting any ads, consumers should take extra steps to verify the advertiser's information. Tools like Google Ads Transparency Center and Meta Ad Library provide detailed information about the advertiser, including their name, location, and the ads they’re running. If anything seems suspicious about the advertiser, it’s best to avoid engaging with their ads.