Fraudsters are increasingly using WhatsApp chat groups offering stock tips to lure victims into "pump and dump" schemes or fake investment offers.
In Luxembourg, there have already been numerous cases of fraud involving fake websites, phone calls or emails where scammers posed as banks or public authorities. RTL has now been alerted to further scams, this time taking place via WhatsApp.
The warning comes from Serge Arendt, who recently found himself added to four such chat groups. He contacted us to explain how the scam works: it typically begins on social media, where, depending on the algorithm, users are suddenly offered "exclusive" investment tips. To gain access to detailed recommendations, people are asked to join a WhatsApp group.
Driven by curiosity, Arendt took a closer look and quickly became sceptical. His online research showed that warnings had already been issued abroad about these groups. It also became clear that the so-called "experts" giving advice inside the chats were operating from fake profiles.
"Pump and dump" and promises of 333% returns
Arendt identified two main methods used to lure people in. The first is the classic "pump and dump" scheme: the supposed experts post an urgent message encouraging members to buy low-value penny stocks as quickly as possible. Once enough people rush in, the price rises, allowing the fraudsters, who had bought the shares cheaply in advance, to sell at a profit. The victims, meanwhile, are left with losses.
The second method is more straightforward: group members are urged to transfer money to a given account, with the promise of a 333% return within five years. According to Arendt, it is crucial that the police, media, and banks raise awareness among the public. He stressed that people must understand one key principle: making large amounts of money quickly is almost always an illusion.
It is also worth remembering that anyone who sells shares within six months of buying them is liable to a 20% tax on profits. As the saying goes: nothing is certain except death and taxes.
BKA and Luxembourg police
Germany's Federal Criminal Police Office (BKA) has meanwhile issued its own warning: fraudsters are now even using an app to impersonate the BKA in order to extract personal data from victims.
The Luxembourg police have not yet issued a formal warning about these WhatsApp groups. When contacted, they said they would get back to us early next week. One thing remains clear: in the digital age, vigilance is more important than ever.
