TechFlow News, March 16 — According to News.bitcoin, the North Dakota Securities Department has issued a warning stating that certain "investment education foundations" claim to teach investors about cryptocurrencies and stocks, but are in fact scams. These fraudulent operations use deceptive tactics, including "risk-free" trials and fake loans, to persuade victims to invest and pay excessive commissions.
The scam typically begins with social media advertisements that direct potential victims to WhatsApp groups operated by fake founders and automated bots. Within these groups, the so-called founders offer investment courses and then introduce a fraudulent cryptocurrency exchange. Investors are initially given "free" tokens to test an artificial intelligence trading bot that falsely generates profits.
Encouraged by the illusion of success, individuals deposit real money. If they lack sufficient funds, scammers refer them to fake loan providers on Telegram. These loans are credited directly to the fraudulent exchange, but victims quickly discover they cannot withdraw any funds unless they repay the loan or pay fabricated commissions. The scammers freeze accounts under the pretext of regulatory issues, then shut down operations and rebrand under new names. To build credibility, the fraudsters may present authentic-looking government documents, claiming registration with the U.S. Securities and Exchange Commission (SEC) and the U.S. Department of the Treasury, and publish misleading articles online.
