Online investment scams are a global, growing, and uniquely pernicious threat. In newly released data, the Federal Trade Commission attributed more than $4.6 billion of US fraud losses in 2023 to investment scams, more than any other fraud category, and a 21% increase in 2022. The FBI’s 2023 Internet Crime Report notes that investment scams were “once again the costliest type of crime tracked by IC3”.
Many investment scams rely on sophisticated fraudulent investment websites that operate a fake trading platform to trick victims into depositing money after being lured in through email, social media posts or fake ads. In January alone, Netcraft detected and blocked almost 13,000 fake investment platform domains across more than 7,000 IPs: the largest number of IPs since we began tracking the platforms independently and 25% more than in December.
Online investment scams promise very high returns with no risks attached, claiming to deliver once-in-a-lifetime opportunities for investors to make guaranteed returns overnight. Usually claiming to trade in forex, cryptocurrency, or other high-risk assets, the unsuspecting investor needs only to make an initial payment to take advantage. These guarantees are meaningless, the claimed investment is a sham, and the victim’s money is lost. The impacts on victims can be devastating both financially and emotionally.
In this blog post, we will take a deep dive into how the cybercriminals behind these scam websites find victims, operate fake trading platforms, deploy social engineering tactics, and eventually trick victims into depositing substantial amounts of money.
Recruiting users to join a fake investment platform
Fake investment platforms are advertised through a myriad of channels. Many are spread through social media platforms like Meta or messaging apps like WhatsApp and Telegram. Reports to Netcraft from our
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