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Ruholamin Haqshanas
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Ruholamin Haqshanas
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New Zealand’s Financial Markets Authority (FMA) has issued a warning about an increasing wave of crypto scams targeting social media users.
In a Monday warning, the watchdog said that the fraudsters operate primarily through YouTube channels and messaging platforms like WhatsApp and Telegram, where they lure unsuspecting users with promises of lucrative investment opportunities.
Scammers Set Up YouTube Channels to Look Legite
Scammers set up YouTube channels that present themselves as trustworthy sources of cryptocurrency trading advice.
Viewers are encouraged to join private messaging groups on WhatsApp or Telegram, where the fraudsters pose as experienced investment experts.
Once inside these groups, victims are directed to fraudulent trading platforms designed to look like legitimate cryptocurrency exchanges.
The scam follows a calculated strategy.
Initially, victims are asked to make small deposits, fostering a sense of trust.
They are then presented with fake profit statements to encourage larger investments.
However, when users attempt to withdraw their funds, they are met with demands for additional fees, and no money is ever returned.
The FMA has flagged more than 40 suspicious trading platforms, including bi-investments.com, phoenix-trades.com, and bricsinvestlimited.com.
A full list of the flagged platforms is available on the FMA’s official website.
The FMA advises anyone who suspects they have fallen victim to a scam to cease all contact with the fraudsters, report the incident to the appropriate platforms, and seek help from their bank to attempt a reversal of the transaction.
As of late, scammers have been increasingly using WhatsApp and Telegram to promote unauthorized investment schemes.
These platforms offer direct access to users, making it easier for scammers to maintain communication and pressure their targets.
A recent survey of 631 traders revealed that Telegram is considered the riskiest platform for trading scams, with 60% of respondents reporting financial losses.
WhatsApp closely follows with similar loss rates, while platforms like Facebook (56%), Instagram (51.8%), and SMS (50%) also pose significant risks.
Even X (formerly Twitter) and LinkedIn, known for their professional user base, reported loss rates of 43.7% and 45.4%, respectively.
FMA Continues to Issue Crypto Scam Alerts
The FMA’s latest warning builds on previous alerts about fraudulent investment schemes.
In May, it cautioned against scams using fake celebrity endorsements. Scammers were found promoting investments using images of New Zealand celebrities in fabricated news articles that appeared to be from reputable local media outlets.
Additionally, in March, the FMA flagged a “clone scam” impersonating BTSWE, a legitimate cryptocurrency exchange in New Zealand.
Last week, a California court fined five individuals involved in IcomTech’s fraudulent Bitcoin Ponzi scheme $5 million.
The court ruling found the defendants guilty of fraud and misappropriation of funds through a fake cryptocurrency trading operation.
The ruling targets David Carmona, Juan Arellano Parra, Moses Valdez, and David Brend, who were found in violation of the Commodity Exchange Act and CFTC regulations.
