Instasham Fraudulent investments being advertised on social media

Action Frauds Warn Instagram Users Against Fake Investment Deals On The App

There has been an increase in the number of investment deals offered on messaging apps like Instagram, targeting buyers aged 20 to 30. During the pandemic lockdowns, men (between 19 and 35 years) were predominantly targeted by groups that offered bogus investment schemes. 

These organisations were based overseas, and the impact of losses was long-lasting, where some young men who lost their money found no other way to get it back.

The scams may work in many ways. In certain cases, people were targeted for their posts by malicious actors who used the information for financial gains, reputation damage and physical harm. In 2020, many were stuck at home, and some entered dating sites where they were offered bogus investment project contracts.

How Does It Work?

Such get-rich-quick schemes claim to deliver high profits in 24 hours. Nevertheless, they tell you at the start you need to pay a small amount like £600. 

Then, the victims are offered bogus cheques or screenshots of the profits and are asked to pay through bank transfers to the criminals' accounts as initial charges to gain access. But if the victim refuses to pay further, the sellers shut their account and close all links.  

How To Protect Yourself?

• It is best to keep personal information to a bare minimum on the internet as criminals seek targets through the posted content on social platforms like Instagram. So, be mindful of what you post on your public profiles. 

• You should always review your social site settings and ensure anonymous posts are not publicly viewed and tracked. Also, never respond to requests related to money transfers into overseas investment plans offering huge returns. 

• Do not even make advance payments or send money to get a refund.

• Always ensure the firm you are dealing with is reliable, authorised and registered. Reject offers made through unsolicited communications. 

• Do not panic, and do not pay if you get messages where you are pressured to pay while you are communicating with an unsolicited caller. 

• Do not communicate with groups that threaten or persuade you to pay to get back the lost investment. 

• The cyber police have been trying to generate awareness and warned people against posting about vulnerable family and friends to predators or others who can endanger family members or finances. 

• So, even when you set up privacy, it's best to keep personal information to a minimum on the internet, and you should avoid posting messages related to passwords or security questions. 

Research On Fraud Risks Associated With Social Media Posts 

The research found people leave a stream of information on online platforms without considering the risk of their digital footprints. For example, the study found that 60 per cent of people disclose their locations and tag the restaurants or places they visit when posting messages or stories. 

It gives a clue to track the interests and purchases made by the victim. However, the most concerning is the internet community posts of the surrounding location that clearly show the position of your house. 

If a malicious group accesses such information, they can use it to get a detailed picture of the place, which can offer direct access to the home and private life of the individual and help them extract other details of the victim. In addition, oversharing or posting publicly available information increases the risk of theft of personal data.