The Washington State Department of Financial Institutions (DFI) has reported multiple complaints about cryptocurrency scams on Whatsapp and Telegram involving fake “professors.” These scams lure investors through social media ads and false educational institutions, promising high returns and offering dubious loans.
Fake Professors Scam Crypto Investors on Telegram and Whatsapp, DFI Warns
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Cryptocurrency Scams: Fake Professors Target Investors
The Washington State Department of Financial Institutions (DFI) issued a consumer alert on Tuesday warning of an “ongoing trend of alleged cryptocurrency scams involving self-proclaimed ‘professors’ in Whatsapp groups.” The DFI’s Securities Division has received several complaints involving “companies claiming to be an institution of higher education, such as a ‘Business School,’ ‘Academy,’ or ‘Wealth Institute,’ providing a curriculum predominantly centered around investing in cryptocurrency.”
Investors often find the investment opportunity via social media ads. Typically, these companies have separate websites for their institution and trading activities, often featuring a “Letter from the Professor” to add a veneer of legitimacy. The alert details:
The alleged fraud typically starts with an investor being placed into a Whatsapp or Telegram group, often with an arbitrary name that includes buzz words like ‘Wealth Club,’ ‘Elite,’ and ‘AI.’ The groups are operated by purported associates of the company with titles including professor, advisor, and assistant.
The scam unfolds as these “professors” offer investment courses and daily trading signals promising high returns. They use assistants to facilitate communication and maintain a facade of legitimacy. Some investors are given small amounts of cryptocurrency to “test” the platform before committing their funds.
Additionally, the companies offer high-value loans or lines of credit to help investors join exclusive “VIP Clubs” or meet capital requirements for new offerings. These loans are often arranged informally through WhatsApp, with the company providing misleading account screenshots. When investors attempt to repay these loans, they are told their accounts will remain frozen until external funds are provided, leading to threatening messages and legal action claims if they fail to comply.
What do you think about the rise of cryptocurrency scams on social media platforms? Let us know in the comments section below.
