Fake investment platforms

How the scam works

The specific tactics used by scammers are constantly shifting and evolving. However, the scam usually follows the same basic formula:

• Initial contact: Scammers use a range of tactics to attract victims to their platforms. They might publish ads on social media with fake endorsements from celebrities. They might make unsolicited phone calls to potential investors. Or they may use group chats on social media platforms like Telegram and WhatsApp to try to convince potential victims to invest. All of these channels eventually lead victims to a fake online trading platform.
• Small initial investment: Often, the scammers will ask for a small initial investment. If victims try to withdraw their investment at this stage, the scammers may release the funds to build trust and encourage larger investments in future.   In some cases, the scammers encourage victims to install software on their devices. The scammers say this software will help them carry out the investment, but instead it grants remote access to the victim’s devices. Scammers use this remote access to gain access to the victim’s bank accounts or obtain their sensitive financial information.
• Fake profits encourage further investment: The scammers will usually tell the victim that their initial investment has been successful and earned substantial profits. They may provide a login for the victim to monitor their investment – showing them fabricated information about their investment’s performance. The scammers then try to persuade the victim to make more significant investments.
• Refusal to process withdrawal requests: When the victim tries to withdraw their profits, the platform will refuse. The scammers may tell victims that they need to make further payments to cover ‘fees’ or ‘taxes’ before the investment can be released. Even if the victim makes the requested payments, no funds will be released. The scammers take the further payments as well as the initial funds.