Beware: US Regulator Alerts Investors to Crypto Scammers Impersonating Professors and Academicians
The crypto sector is increasingly becoming a playground for scammers, exploiting the growing adoption of cryptocurrencies. US regulators have issued a stark warning about a new breed of scams targeting crypto investors, where fraudsters masquerade as professors or academic figures. Platforms like Facebook, WhatsApp, and Telegram are being used by these cybercriminals to identify and contact potential victims, with the intention of siphoning off their crypto assets through intricate schemes.
The Securities division of the Washington State Department of Financial Institutions (DFI) has reported a surge in complaints regarding this particular type of scam. According to DFI findings, scammers posing as professors or business school deans are approaching individuals, offering courses supposedly related to cryptocurrency investments.
“The scam typically begins by adding investors to WhatsApp or Telegram groups. The ‘Professor’ or company founder then provides investment courses such as ‘daily trading signals’ that promise unusually high returns,” explains the DFI.
In some cases, scammers entice victims by offering small amounts of cryptocurrency tokens to test on platforms promoted by the fraudsters, with assurances of significant returns. Additionally, they’ve been known to offer informal credit and loan options through messaging apps to facilitate investments in high-risk crypto ventures like initial coin offerings (ICOs), non-fungible tokens (NFTs), or alternative cryptocurrencies (altcoins).
The DFI notes instances where scammers employ group members to pose as legitimate investors within these WhatsApp and Telegram groups to further deceive victims.
“When investors attempt to repay their loans, the company informs them that their accounts will remain frozen until repayment with external funds is made. Threatening messages have been sent to investors who fail to comply,” adds the DFI.
The extent of the scam’s impact and the number of victims affected remain unclear. The DFI has not disclosed the volume of complaints received in recent months concerning this scam tactic.
Meanwhile, scammers are refining their methods, creating authentic-looking mobile apps and websites to lure unsuspecting victims into their schemes. They often display documents on these platforms that appear to be from regulatory or governmental agencies to bolster their credibility.
“As reports of fraudulent activities increase, these companies may announce sudden ‘mergers’ without providing specifics,” warns the regulator, advising investors to thoroughly verify the legitimacy of any crypto-related platforms or apps they engage with.
Earlier in June, the US Federal Trade Commission (FTC) alerted the crypto community to a rise in romance scams where scammers used fake romantic connections to persuade individuals to invest in dubious crypto tokens.
