New Zealand’s Financial Markets Authority (FMA) has issued a warning regarding an investment scam operating through YouTube channels. The channels are being used to promote fraudulent crypto investment websites, targeting unsuspecting individuals.
In a notice issued on Monday (Dec. 16), authorities warned about YouTube profiles posing as ‘crypto experts’ to lure viewers into joining private WhatsApp or Telegram groups under the guise of investment discussions. These scammers often offer prizes and gifts to entice people to sign up.
Once someone accepts the invitation, the scammers present themselves as investment “mentors,” or “coaches,” providing seemingly professional advice. They make bold, unrealistic promises such as “earn above $2000 – $7000 daily on crypto” or “avoid risks and generate profit… within three day.”
The next step involves introducing the victim to a fake investment platform, which often mimics legitimate cryptocurrency exchanges. The scammers guide their victims through the investment process, starting with small amounts of money. Victims are shown fake profits and persuaded to invest larger sums.
When it comes time to withdraw their supposed earnings, victims are told they need to pay a fee to release their funds. However, even after paying these fees, no money is ever returned.
The FMA has identified nearly 50 suspicious trading platforms, including websites like phoenixtradesinc.com, bitmaxforextrading.com, and cryptonextrade.com. You can find the full list of flagged platforms on the FMA’s official website.
If you believe you’ve fallen victim to one of these scams, the FMA strongly urges you to stop all communication with the fraudsters immediately. Report the incident to the relevant platforms and contact your bank to see if a reversal of the transaction is possible.
Crypto scams surge on WhatsApp, Telegram, and YouTube
Lately, scammers have been increasingly using platforms like WhatsApp and Telegram to promote unauthorized investment schemes. The channels provide direct access to users, allowing scammers to easily stay in touch and exert pressure on their targets.
ReadWrite reported that research published in June shows cryptocurrency losses from deepfake-related scams on platforms like YouTube are expected to exceed $25 billion in 2024, doubling last year’s figures.
226,000 people are currently being scammed on YouTube by an AI Elon Musk – asking for their crypto.
The account looks like a legit @Tesla account, but it is clearly not, as the username is "tesla.elon-US"
They are using an AI generated Elon talking about the robotaxi and… pic.twitter.com/fAiFVpt1tX
— Zoli ⚡️ (@zolihonig) October 11, 2024
Even deepfakes of Elon Musk have been used in crypto scams on YouTube. Back in August, a five-hour YouTube Live stream featuring a fake version of Musk was used to promote a cryptocurrency scam. Viewers were encouraged to send Bitcoin (BTC), Ethereum (ETH), or Dogecoin (DOGE) to take part in a so-called giveaway.
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