Scammers are developing ways to target people via WhatsApp and social media

In a recent development in online scams, scammers have started targeting people on WhatsApp and social media, posing as well-known financial advisors.

According to an article published by financial advisor Bob Carlson in Forbes, these scammers use information taken from the official websites or personal accounts of real financial advisors to create chat rooms that appear to represent the real entities.

This trick is a turning point in the world of digital fraud, as fraudsters rely on accurate and reliable details to give false legitimacy to their activities.

How does the trick work?

These rooms start by offering sound financial advice and reliable market commentary, to attract users and gain their trust. But after a while, the scammers start making fraudulent investment offers or asking for fees for customized financial services.

For example, users may be lured into investing in cryptocurrencies or paying for professional investment advice. The ultimate goal is to convince users to provide sensitive personal information or money, and then steal it without providing any real services.

Methods used

Scammers use advanced techniques to mimic legitimate rooms. They use the names of real financial advisors and quote content from their websites, making it difficult for the average user to distinguish between real and fraudulent rooms.

After gaining initial trust by offering legitimate advice, scammers move on to the scam stage, offering fake services to make quick profits or lucrative investments.

Carlson warned that licensed financial advisors in the United States are not allowed to use WhatsApp or social media platforms to offer investment advice or promote their services.

Regulators in the United States have strict laws prohibiting advisors from using these methods to provide financial advice to individuals, so any chat room claiming to offer investment advice should be a red flag.

What should users do?

• Verify your identity: When joining any chat room or receiving investment advice online, always verify the source. Do not provide personal or financial information unless you are sure of the identity of the person or entity you are dealing with.
• Look for licenses: Licensed financial advisors have verifiable licenses from regulatory bodies. Make sure the person you are dealing with has an active and accredited license.
• Stay away from tempting offers: If investment offers seem too good to be true, they are likely fraudulent. Be wary of offers that promise quick or guaranteed returns.

Financial scammers rely on platforms like WhatsApp to trick users into giving away their money or personal information.

Carlson advises investors and traders to be extremely cautious when dealing with any investment advice offered via social media, and to ensure the legitimacy of the sources before making any financial decisions.