Recently, RTL highlighted scams involving fake websites or fraudulent phone calls and emails, where criminals impersonate banks. But in the digital age, fraudsters’ creativity knows no limits. Here is yet another devious tactic.
On social media, users are lured in with messages such as: “Hello, do you want to invest and make a lot of money? Join this WhatsApp group.”
Serge Arendt raises awareness on these groups, explaining that fraudsters entice people with supposed tips for lucrative stock market or cryptocurrency investments. Out of curiosity, he decided to join one of the groups himself, not as a victim, but simply to see which shares were being promoted and how they developed.
Potential victims, tempted by promises of big profits, are deliberately kept in good spirits within these chat groups. Muriel Frank, a researcher at the University of Luxembourg who specialises in scams, noted that members constantly push each other throughout the day. She said the aim is to create a sense of momentum and motivation, with certain members offering guidance and encouragement to invest.
Jeff Kaufmann from Bee Secure added that people need to ask themselves who these group members really are, with some of them possibly not even being real, but AI-generated personas designed to make investing seem attractive. Kaufmann explained that these supposed investors often claim to have already made huge profits, which helps build a sense of community and makes victims more likely to give in to greed and invest, hoping for the same results.
Of course, the only ones who really profit are the fraudsters. Victims either transfer money directly to dubious platforms or buy into unknown shares manipulated by the scammers. Arendt explained the so-called ‘pump and dump’ strategy: so-called experts send urgent messages to encourage people to buy very cheap shares, known as ‘penny stocks’. Once the price rises due to demand, the fraudsters sell the stocks they had previously bought cheaply, making a profit while their victims lose out, Arendt said.
According to Kaufmann, people can avoid falling into the trap by following the simple rule of thumb: if something sounds too good to be true, it probably is. He advised people to stay critical, check platforms thoroughly and question who really runs these groups. Bee Secure offers advice and assistance via its helpline at 8002 1234.
There are numerous investigations into where these scams are actually run, and most point towards Southeast Asia. Frank confirmed that in Myanmar and elsewhere entire cities are dedicated to scam operations. She explained that these centres resemble huge textile factories, except that instead of sewing machines they are filled with tables, phones, and computers. She added that many of the workers are not there by choice, and some are forced to juggle conversations with 50 potential victims at once.
This is a criminal business worth billions, in which people lose out on both sides: the poor who are exploited in scam factories to deceive others, and those who fall for the fraudsters’ promises and end up losing their money.
