Investment scams are increasing, 13,000 domains detected in January 2024


Internet security experts detected and blocked nearly 13,000 fake investment platform domains across more than 7,000 IPs in January 2024, a 25% increase from December 2023.

The figure comes amid growing concerns over the growing threat of online investment scams, which continue to prey on unsuspecting individuals around the world.

According to data According to the Federal Trade Commission (FTC), investment scams accounted for more than $4.6 billion in fraud losses in the United States alone in 2023, a worrying 21% increase over to the previous year.

In an advisory released today, Netcraft said these scams often operate through sophisticated fraudulent investment websites, luring victims through email solicitations, social media posts or deceptive advertising.

A common strategy mentioned in the article is recruiting users through social media platforms or messaging apps, where self-proclaimed “experts” or “financial analysts” tout investment opportunities. These individuals, often robots engaged in scripted conversations, create the illusion of legitimacy and profitability, ultimately leading victims to deposit funds into fake investment platforms.

Additionally, cybercriminals use email campaigns to lure their victims, promising them high returns and providing links to fraudulent websites disguised as legitimate investment platforms. Although they seem convincing, these platforms are full of red flags, including unrealistic return on investment (ROI) promises and tiered investment schemes.

Additionally, fraudsters may combine investment scams with advance fee frauds, soliciting upfront payments under false pretenses. Victims are lured by the promise of access to substantial inheritance funds, only to discover that they have been victims of a sophisticated ruse.

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By presenting professional-looking financial dashboards and employing various manipulation techniques, scammers create the illusion of legitimate business activity to hook victims and extract substantial investments.

“Regardless of the tactic adopted, once the victim invests heavily and then attempts to withdraw a large amount of money, the site operator or account manager will make excuses as to why this is not possible,” Netcraft wrote. “Eventually, the contact will cease completely, leaving the victim massively destitute. »

The research highlights the urgent need to strengthen cybersecurity measures and increase awareness to combat the proliferation of online investment scams. By understanding the tactics cybercriminals employ, individuals can better protect themselves against these deceptive schemes.

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