A new scam targeting cryptocurrency investors has emerged, with fraudsters posing as business “professors.” The Washington State Department of Financial Institutions (DFI) issued a warning about the scheme, which starts with social media ads offering lucrative investment opportunities.
Victims are redirected to scam websites claiming affiliations with prestigious “Academies” or “Business Schools.” They are then invited to WhatsApp or Telegram groups, receiving fake trading signals and tips. The scam escalates when victims are offered high-dollar loans or lines of credit, processed informally and requiring financial information.
DFI reports that these transactions are fake, with no blockchain records. Victims’ accounts are later frozen, and they are pressured to repay loans out of pocket. A notable case involved the “Excellence and Innovation Fortune Business School,” which defrauded a victim of $300,000.
These scams are increasingly common, with similar tactics seen in the UK. The strategic importance lies in raising awareness to prevent further victimization in the growing cryptocurrency space.
