BlackRock has warned consumers interested in its Bitcoin and Ether exchange-traded funds of a rise in investment frauds. Alerting the public via a July 29 X post to be wary of scammers using its name to sell dubious “training or investments,” the New York-based asset management firm advised caution.
The firm confirmed that its executives do not interact via social media channels such WhatsApp or Telegram. BlackRock advised consumers to keep alert and not interact with any dubious correspondence.
A blog on BlackRock’s website claims that phishing sites and bogus email addresses combined with real BlackRock staff names allow crooks to fool consumers. Usually contacting victims on social media with tempting offers, these scam artists fool them into divulging private information.
BlackRock Warns of Phony Websites
BlackRock underlined that it never asks payments via outside sources and cautioned against manipulated domain names, such “blackrockk.com,” which are frequently used to send customers to phoney websites. Official BlackRock emails finish “@blackrock.com,” hence any changes in email addresses throughout correspondence could indicate a fraud.
The company also noted frauds involving invites to fictitious stock or crypto training courses, whereby customers are encouraged to invest in fictitious trading platforms and subsequently solicited for further funds to withdraw their investments.
The warning follows a notable surge in investments into Bitcoin and Ethereum exchange-traded funds, drawing con artists looking to profit from the market’s popularity. In the cryptocurrency market, impersonation scams are common; prior warnings have been issued on fraudsters acting as officials from companies like HashKey and well-known personalities.
According to a recent analysis by Belgium’s Financial Services and Markets Authority, half of all fraud reports in the first half of 2024 came from crypto-related frauds.
