The Washington State Department of Financial Institutions (DFI) has issued a critical warning about an emerging cryptocurrency scam that preys on unsuspecting victims through the guise of educational institutions.
This sophisticated fraud operation involves scammers posing as business “professors” affiliated with fictitious academies, business schools, or wealth institutes.
According to a recent statement from the DFI, fraudsters are targeting victims through Facebook ads, promising high returns on investments. Victims are directed to a credible-looking company website and then added to chat groups where scammers promise lucrative returns.
The scam involves offering high-dollar loans or lines of credit for investment opportunities, freezing victims’ accounts, and pressuring them to repay non-existent loans with their own funds. Scammers also request personal information and may proceed to “borrow” funds on behalf of the investor, providing fake transaction proofs that never actually occurred.
The DFI highlighted a specific case involving the “Excellence and Innovation Fortune Business School,” which lured victims into the ICHCOIN scam. This operation sent victims 500 Tether (USDT) to “test” the platform, leading to investments of up to $300,000. The scammers falsely claimed substantial deposits, which blockchain reviews could not confirm.
The DFI reported that investors unable to repay these fictitious loans have received threatening messages and collection letters, with the fraudulent companies claiming impending legal action. The department also stated that it had not received any reports of investors successfully withdrawing their funds after repaying the loan.
In light of these sophisticated and evolving scams, the DFI urged consumers to exercise extreme caution with unsolicited investment offers, especially those involving cryptocurrency. The department emphasized the importance of thorough research and verification before engaging with any investment opportunity, particularly those promising unusually high returns or requiring personal information for loans.
This scam alert comes against a backdrop of surging cryptocurrency fraud in 2024. Scam Sniffer, a blockchain research firm, reported over $314 million stolen through phishing schemes in the first half of the year alone, marking a 6.44% increase from the previous year. Notably, $58 million of this sum came from just 20 high-value targets, including an individual loss of $11 million—the second-largest single crypto theft on record.
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