Fraudsters develop methods to target people via WhatsApp and social media

In a recent development in online fraud tactics, fraudsters have begun targeting individuals on WhatsApp and social media platforms, disguising themselves as well-known financial advisors.

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

These rooms begin by offering accurate financial advice and reliable market commentary to attract users and gain their trust. However, after some time, the fraudsters start offering fraudulent investment opportunities or request fees for personalized financial services.

For instance, users might be enticed to invest in cryptocurrencies or pay for specialized investment advice. The ultimate goal is to trick users into providing sensitive personal information or money, which the fraudsters then steal without providing any real services.

Fraudsters rely on advanced techniques to mimic legitimate chat 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 genuine and fraudulent rooms.

After gaining initial trust by offering legitimate advice, the fraudsters move to the scamming stage, offering fake services for quick profits or attractive investments.

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