Prominent social media platforms WhatsApp, Facebook, X (Twitter) and Telegram have seen disproportionate rise in investment scams over the last few months.

We discovered a staggering 81,000 fake investment WhatsApp groups during the period of January to June 2024.

The scammers are using sophisticated tactics, including impersonating reputed financial institutions and professionals, to lure unsuspecting investors into fake investment groups, promising quick and substantial returns.

Within these groups, scammers manipulate victims by providing fake proof of earnings and promising high returns. They then disappear with the investments, leaving victims with significant financial losses. The scam operations involve stolen data, fake profiles, and rigged trading platforms to steal money from unsuspecting victims.

Modus Operandi :

Fraudsters acquire data through various methods, including targeted social media ads, unsolicited direct messages, fake investment groups, and SMS invites.
There is a well-organized structure where criminals purchase hacked stock trading data from brokers who source it from underground forums.
These brokers sell the data to organized crime groups that operate large-scale trading scams. The crime groups employ handlers and actors to execute scams, posing as successful investors and using social media platforms to lure victims into WhatsApp groups.

How scammers lure WhatsApp users into investment scams :

• Victims are added to random WhatsApp investing groups.
• Multiple groups are created simultaneously.
• The profile of a famous investor and their credentials are shared with group members
• Discussions begin in the group, some members hyping up upcoming “lessons” or “opportunities”.
• Initial stock tips are shared for free.
• Active members are pushed to invest in special programs with promises of bigger rewards.
• If a victim refuses to invest more or tries to withdraw funds, their account is disabled, and the WhatsApp group is deleted. Scammers vanish with the victims’ funds.

Investors should be cautious and watch for signs of fraud. If you receive a random invitation to join a trading community from unknown contacts, proceed with caution. Avoid falling for promises of quick wealth or guaranteed returns. “If it sounds too good to be true, then it probably is”.