Asset management giant BlackRock has warned users of a surge in investment scams targeting its customer base for its spot Bitcoin and Ether exchange-traded funds product.
In a July 29 X post, the New York-based asset manager advised users to stay cautious of scammers using its brand name to direct investors towards dubious “training or investments.”
The company stressed that its executives don’t contact anyone via social media platforms like WhatsApp and Telegram, adding:
“Please remain vigilant, and if you suspect fraudulent activity, do not proceed.”
Scam tactics are evolving
According to a blog on BlackRock’s website, the scammers typically use actual names of the firm’s employees, alongside fake email addresses and phishing websites, to dupe users.
Victims are contacted on social media platforms and lured in with lucrative offers, where they are socially engineered to hand over confidential information.
The asset manager highlighted that these schemes often involve payment requests via third-party channels that are not connected to BlackRock, adding that “BlackRock would never request such payments.”
Scammers also use manipulated domain names that are slightly different from the original to trick victims. For instance, blackrockk.com, with an extra k, would direct users to a malicious website.
The blog stressed that all official BlackRock employee emails end with “@blackrock.com,” adding that changes in email domain mid-communication are also a sign of a potential scam.
Another tactic highlighted by the asset manager was scammers inviting users to stock or crypto training sessions. These groups claim to offer trading signals and ask participants to make investments in various “fake trading platforms.” When a user tries to withdraw, the scammers ask for additional funds.
On July 17, the Washington State Department of Financial Institutions issued a warning regarding a similar scheme.
The warning from BlackRock comes as the market for Bitcoin—and Ethereum-based exchange-traded funds has attracted billions of dollars in investment. As a result, scammers are cashing in on the hype.
Impersonation scams are a common phenomenon in the crypto market, where the identities of figures like Elon Musk have been used to promote nefarious schemes. Last year, the FBI warned of scammers impersonating executives of HashKey group, a Singaporean venture capital firm.
A report from the Financial Services and Markets Authority in Belgium revealed that crypto scams accounted for 50% of the total fraud reports received by the agency in the first half of 2024.
