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Investment scams surge on social media platforms including WhatsApp and FB | News
These fraudulent operations involve stolen data, fake profiles and rigged trading platforms to steal money from unsuspecting victims.
(Photo: Reuters)Ashutosh Mishra New Delhi
A significant increase in investment fraud is being observed on major social media platforms including WhatsApp, Facebook, Twitter and Telegram, according to research by cybersecurity firm CloudSEK.
The firm, in its research, discovered over 29,000 malicious investment ads on Facebook along with a staggering 81,000 fake investment groups on WhatsApp during the period January to June 2024.
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According to the report, a scammer who was in the business for over six years, with operators, was earning around $50,000 (roughly Rs 41 lakh) per month.
Additionally, personal data was available for purchase for $100 for 10,000 rows of data containing details such as phone numbers and names.
Fraudsters used sophisticated tactics, including impersonating reputable financial institutions and professionals, to lure unsuspecting investors into fake investment pools, promising quick and substantial returns.
“Within these groups, scammers manipulate victims by providing false proof of earnings and promising high returns. They then disappear with the investments, leaving victims with significant financial losses,” the report said.
These fraudulent operations involve stolen data, fake profiles, and rigged trading platforms to steal money from unsuspecting victims.
CloudSEK also identified more than 81,000 fake Twitter profiles that were misusing the names of financial institutions to mislead users.
Furthermore, regions such as India, Malaysia, the US, Thailand, and Vietnam were the main targets of these investment scams.
According to data from the India Cyber Crime Coordination Centre (I4C), the total amount lost by Indians to cybercriminals between January and April 2024 stood at a staggering Rs 17.6 billion.
Operation mode
Fraudsters acquire data through a variety of methods, including targeted social media ads, unsolicited direct messages, fake investment groups, and SMS invitations.
There is a well-organized structure where criminals buy hacked stock trading data from brokers who obtain it from underground forums, the report said.
“These brokers then sell the data to organized crime groups that operate large-scale trading scams. The criminal groups employ manipulators and actors to execute scams, posing as successful investors and using social media platforms to lure victims into WhatsApp groups,” the report said.