WA DFI Warning: Latest Scams Offer Risk-Free Trials & Loans

The Washington Department of Finanacial Institutions (DFI) is warning us of a new investment scam involving "fake investment eduction foundations." The fake foundations attempt to lure investors with promises of education on stocks and cryptocurrency, with "risk-free" trials and loans.

The Goal of the Scammer is to Get People to Invest Their Own Money into the Platform.

"The rise of fake 'investment education foundations' is a concerning trend preying on investors' desire to reduce the risk of investing in cryptocurrency," DFI Director Charlie Clark said. "These scams often promise guaranteed returns and sophisticated advice, but they are designed to deceive. It’s crucial for investors to remain vigilant and skeptical of unsolicited offers before handing over their money."

The scam usually starts when an investor clicks on an investment education foundation's social media advertisement sending them to a messaging app managed by a fake founder and (AI) bots. The "founder" provides the investor with tips on the stock market, investing, and eventually introduces a fraudulent cryptocurrency exchange.

Investors are encouraged to create a account with the exchange. The foundation provides the investor with "free" tokens generating fake profits. Eventually, the foundation directs the investor to invest their personal money into the platform.

The investor may also be asked to sign a contract or partnership agreement that “guarantees” them a specified return in exchange for paying a percentage of these guaranteed returns in commission.

This is a scam. The scammers use real government and professional documents to appear legitimate.

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DFI urges you to exercise caution before responding to investment offers received through social media, emails, or phone calls.

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