Unfortunately, the social media platform Instagram continues to be a highly effective incubator of scams and scammers. The combination of glitzy photos, FOMO inspiring lifestyle shots and a few hard facts to back up any claims, is an ideal base for fraudsters. Fresh reports this week to Forex Fraud have identified a new potential scammer whose profile and approach need to be avoided.
The Forex Fraud team are still investigating the finer details of a report of fraudulent activity, so they haven’t yet reached a position that would allow us to identify the scammer. But the story told, and the methods used, come straight from the scammer’s playbook.
How to spot an Instagram investment scam
Trader MF contacted Forex Fraud after noticing a massive red flag – a request for additional funds to be sent to the scammer to satisfy a cash withdrawal from their account. Being asked to send money to an account you’re trying to clear down doesn’t make sense, and luckily MF resisted the temptation to throw good money after bad.
Further details revealed some of the classic ploys used by scammers.
MF had initially sent funds (Bitcoin) to an account which it was claimed would then be managed by the expert Instagram investor. The scammer’s alluring IG profile still includes references to Binary Options Trader, Forex Trader, Signals, Trade Analyst and Bitcoin Trader. Instagram posts of hotel swimming pools, beautiful people and glitzy jewellery are interspersed with videos of profitable accounts being cashed out and calls to get involved in what looks like an easy-to-use money-making operation.
“We are cashing out massively.
Stop being afraid of what could go wrong, and start being excited about what could go right.”
Proving you can’t believe everything you read on the internet, there is a collection of affirmations from followers and users.
“Best of her kind!”
Another red flag that was missed was the request made by the IG influencer that the unsuspecting investor shouldn’t log in to their IQ Option account as that would “affect the trading.”
With the situation unravelling and trust at a low point, the victim did log in to find that although an account had been set up at IQ Option, no funds had ever been deposited.
Any investors beating themselves up for falling for an Insta scam should consider how the nature of the platform means it forms a sweet spot for a whole range of cons. Fake celebrity endorsements, bogus business collaboration requests, phishing scams, and non-existent job offers all litter the fourth most popular social media site on the planet.
Crowdsourcing information about scam brokers can help others avoid falling into the traps set by disreputable brokers and you can share your experiences here. If you want to know more about this particular topic or have been scammed by a fraudulent broker, you can also contact us at [email protected]
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