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BlackRock urged its customers to refrain from conducting any transaction that they find fraudulent.
Investment asset management firm BlackRock Inc (NYSE: BLK) has put out a notice warning the public about crypto-related scams.
On X, BlackRock acknowledged the increase in the occurrence of such investment scams that end up directing unsuspecting victims to crypto websites or even social media platforms like Telegram and WhatsApp. In the end, these users are cheated out of their crypto assets.
The Stern BlackRock Caution
BlackRock made it clear that the firm and its executives would never contact any customer via social media platforms. Also, they would not offer investments or solicit payment of any sort via these aforementioned platforms. Consequently, the spot Bitcoin ETF issuer advised the public to exercise caution in dealing with individuals, websites or social media platforms that try to use the BlackRock brand.
There has been a spike in investment-related scams, including directing users toward crypto investment-related websites and/or social media platforms such as WhatsApp or Telegram. We urge caution in dealing with individuals, websites or social media platforms using our brand and…
— BlackRock (@BlackRock) July 28, 2024
According to the asset manager, these bad actors could offer training or investments but customers would need to verify to avoid falling victim to a scam. BlackRock urged its customers to refrain from conducting any transaction that they find fraudulent. Though there has been a recent increase in the activities of bad actors, this is not the first time the financial behemoth has faced such an attack.
In 2023, BlackRock sued the owner of several fake domain names that tried to impersonate the company. At the time, these phishing websites tried to defraud customers of the New York-headquartered company and the plot had a connection with cryptocurrencies. The propagation of “BlackRock iShares XRP Trust”, an XRP Exchange-Traded Fund (ETF) is a more recent occurrence.
The BlackRock iShares XRP Trust showed up in Q4, 2023 on the official Delaware investment trusts registration website. However, it turned out that BlackRock did not file the offering. The news triggered a massive rally in the price of XRP within just an hour but dropped to the same level after investors discovered that someone was illegally using BlackRock’s name.
This event coincided with when the asset manager sought the United States Securities and Exchange Commission’s (SEC) approval for spot Bitcoin ETF and Ethereum ETF. Hence, the fraudster behind the XRP Trust exploited the vulnerability of BlackRock customers at the time, making them believe the financial giant had also filed for an XRP ETF.
Eventually, the firm had to release a statement, clarifying its non-involvement with the Trust.
Hamster Kombat Face Scam Attacks
Generally, crypto scammers are on the rampage, seeing gullible and unsuspecting victims to siphon their funds. Unfortunately, the rise in generative Artificial Intelligence (AI) tools has made it easier to achieve these fraudulent practices. A few days ago, the security team at the Telegram-based game Hamster Kombat issued a public warning, highlighting the activities of crypto scammers.
According to Olga Svistunova, a security expert and a member of Kaspersky’s team, these scammers often offer victims fake airdrops that lead them to fraudulent sites. At other times, they create fake websites where they promise free coins to users. Crypto enthusiasts are advised to maintain caution with their investments.
