Asset management giant BlackRock has issued a warning about an increase in investment scams targeting its customer base for its spot Bitcoin and Ether exchange-traded funds (ETFs) product.

Stay Cautious of Scams

In a July 29 announcement, the New York-based asset manager cautioned users to be wary of scammers using its brand name to lure investors into dubious “training or investments.” The company emphasized that its executives do not contact individuals via social media platforms like WhatsApp and Telegram. They advised:

“Please remain vigilant, and if you suspect fraudulent activity, do not proceed.”

Scam Tactics Are Evolving

According to BlackRock, scammers typically use real names of the firm’s employees, along with fake email addresses and phishing websites, to deceive users. Victims are often contacted on social media platforms and enticed with lucrative offers, leading them to share confidential information.

The asset manager highlighted that these schemes frequently involve payment requests through third-party channels unconnected to BlackRock, noting that “BlackRock would never request such payments.”

Another tactic involves using slightly modified domain names to trick victims. For example, a domain like blackrockk.com, with an extra ‘k’, could direct users to a malicious website. BlackRock stressed that all official employee emails end with “@blackrock.com” and that changes in email domains during communication are a potential scam indicator.

Common Scam Tactics

Scammers also invite users to stock or crypto training sessions, claiming to offer trading signals and asking participants to invest in various “fake trading platforms.” When a user attempts to withdraw funds, the scammers request additional payments.

In a related warning on July 17, the Washington State Department of Financial Institutions alerted the public about a similar scheme.

The warning from BlackRock comes as the market for Bitcoin and Ethereum-based exchange-traded funds has attracted significant investment. Consequently, scammers are exploiting the hype to trick investors.

Impersonation Scams in the Crypto Market

Impersonation scams are prevalent in the crypto market, with identities of prominent figures like Elon Musk being used to promote fraudulent schemes. Last year, the FBI warned about scammers impersonating executives of HashKey Group, a Singaporean venture capital firm.

A report from the Financial Services and Markets Authority in Belgium revealed that crypto scams accounted for 50% of the total fraud reports received by the agency in the first half of 2024.

Stay informed and vigilant about the latest developments in the cryptocurrency world by exploring more news on Global Crypto News.

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