The scam typically begins on Facebook advertisements in which those who are interested click the link and receive a “Letter from the Professor” or “Letter from the Dean” on the official website.
Fraudulent ‘Professors’ Use Fake Loans to Scam Crypto Victims
The financial regulator of Washington has warned people of an emerging scam in the crypto space -that is, fraudsters disguise themselves in the disguise of”business “professors” to trick victims into depositing their hard-earned money in a scam with cryptocurrency or else face “legal action.”
“The “self-proclaimed professors” claim to belong to the “Academy,” “Business School,” or “Wealth Institute,” enticing students with courses that could lead to “exorbitant rates of return,” according to an announcement on 16 July from the Washington State Department of Financial Institutions (DFI).
Victims usually come across the opportunity to invest in a Facebook advertisement and click on the link only to be presented with a “Letter from the Professor” or “Letter from the Dean” on the company’s website.
Washington DFI stated that they’re added to WhatsApp as well as Telegram chat, typically with a name that isn’t specific, like “daily trading signals,” in which the professors try to lure victims with lucrative rewards.
How does the scam work
The fake academy is expected to offer high-dollar loans or lines of credit to investors who want to satisfy the capital requirements of an allegedly exclusive, new offer.
Investors are required to help by providing personal information such as credit score or license and accepting a loan agreement that makes the offer appear more genuine.
In some instances, even when the client does not accept the offer or accepts it, an academic’s “assistant” will borrow the money — usually in crypto — in the name of the person investing and transfer it to their account. They’ll typically attach a picture to make it appear real; however, websites that track blockchain transactions indicate that no transactions were ever done, the DFI notes.
Investors are initially informed that this loan is able to be paid back with the money they make. However, in actuality, the business will block account accounts and begin to threaten the investors with legal actions until they settle the loan from their own pockets, DFI said.
“When they are unable to do so, investors have received threatening messages from the company and/or collection letters claiming legal action will be taken against them.”
DFI has said that it hasn’t received any reports of an investor being able to withdraw funds after making the loan repayment.
In a similar case, DFI also reported complaints regarding “Excellence and Innovation Fortune Business School,” saying it was a financial and investment-oriented institution. However, instead, it lured users into the scam together cryptocurrency.
The fraudsters even gave 500 Tether ( USDT) to the victim in order to “test” the platform before they eventually convinced the victim to take $300,000 from their pockets to fund the scam.
“The investor is believed to have received an amount of 450,000 USDT in the ICHCOIN bank account. However, a look at the blockchain’s records does not reveal an account of the transfer,” DFI observed.
This scam was also spread via WhatsApp, which was used to facilitate the scam. Investors were required to give their personal information in order to sign a loan agreement.
“DFI urges consumers to exercise extreme caution before responding to any solicitation offering investment or financial services.”
