Gen, the company behind internet security leader Norton, has reported a sharp rise in financial scams aimed at Australians which have more than doubled in the past twelve months.
In the last two years Gen has blocked more than 460,000 financial scam attacks which have been launched during the winter months in Australia – two times more than when compared to the average across the rest of the year.
These cons involve cryptocurrency and investments schemes that rely on convincing victims they were legitimate opportunities.
Gen says they’ve noticed scammers are using compromised social media accounts to promote fake investment opportunities.
Once the account is taken over, the scammer posts fabricated stories and testimonials designed to create the impression the account holder has made significant money through cryptocurrency trading, Bitcoin mining, or other online investment schemes.
One example of a compromised account shared a screenshot showing a $55,000 payment deposited into a bank account, accompanied by messages encouraging followers to trust and take a chance on the cryptocurrency mentor.
Another post showed the person receiving more than $52,000 from Bitcoin mining alongside a testimonial that praises a trading coach for delivering these returns.
Unfortunately the Instagram account – @tradelikechantelfx – is still live and is yet to be taken down.
And because these posts appear to come from a user many people know and trust, they appear far more convincing than traditional scam emails or unsolicited messages that are usually easier to spot.
“These scams are designed to create a sense of opportunity and urgency,” says Dean Williams, Principal Systems Engineer for Norton.
“Cybercriminals use social engineering tactics to make social media users feel like they’re missing out on financial success and encourage them to engage with the scammer.
“Cybercriminals understand that trust is one of the most powerful tools they can exploit.
“When an investment opportunity appears to come from a friend, family member or trusted contact, people are far more likely to let their guard down.
“These scams often create the illusion that ordinary Australians are making life-changing amounts of money through cryptocurrency, trading platforms or investment schemes.
“In reality, the social media account may have been compromised and the posts are being used to recruit new victims.”
