The scheme typically begins with enticing Facebook ads promising high returns on investment.
This is through courses offered by supposed “Academies” or “Business Schools”. Let’s explore this new kind of crypto scammer more.
Rising Threat: Sophisticated Crypto Scam Tactics
According to Washington State DFI on July 16th, these self-proclaimed professors use sophisticated tactics. They aim to deceive potential investors into fraudulent schemes. The process often starts with a compelling “Letter from the Professor” or “Letter from the Dean” on their websites. This adds an air of legitimacy to their operations.
Once hooked, victims are directed to join messaging platforms like WhatsApp or Telegram. There, they receive promises of substantial profits through daily trading signals or other investment strategies. The scammers then propose high-dollar loans or lines of credit to cover the required investment capital. They insist on personal details and have victims sign loan agreements to convince them of the scheme’s authenticity further.
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In some instances, even if victims decline the loan offer, scammers’ assistants purportedly proceed to borrow funds in cryptocurrency on their behalf, falsely claiming deposits into victim accounts with fabricated transaction screenshots. Investigations by the DFI have revealed that these transactions never occurred, despite the appearance of proof on the scammers’ end.
The fraudulent scheme takes a dark turn when victims realize they cannot withdraw any profits as promised. Instead, their accounts are frozen, and they face relentless threats of legal action unless they repay the fictitious loans out of their own pockets. Shockingly, DFI has not received any reports of investors successfully retrieving their funds by complying with these demands.
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