North Dakota Warns of Cryptocurrency and Stock Investment Scams

According to PANews, the North Dakota Securities Department has issued a warning about fraudulent schemes posing as 'investment education foundations' that claim to teach investors about cryptocurrency and stock trading. These scams employ deceptive tactics, such as 'risk-free' trials and fake loans, to persuade victims to invest and pay exorbitant commissions. The scams typically begin with social media advertisements that lead potential victims to WhatsApp groups operated by fake founders and automated bots. Within these groups, the so-called founders offer investment courses and introduce a fraudulent cryptocurrency exchange. Initially, investors receive 'free' tokens to test an AI trading bot, which falsely generates profits. Encouraged by the illusion of success, individuals deposit real money. If they lack sufficient funds, scammers direct them to fake loan providers on Telegram. These loans are credited directly to the fraudulent exchange, but victims soon discover they cannot withdraw any funds unless they repay the loans or pay fake commissions. The scams freeze accounts under the pretense of regulatory issues, after which the fraudsters shut down operations and rebrand under different names. To gain credibility, scammers may present genuine government documents, claiming registration with the U.S. Securities and Exchange Commission (SEC) and the U.S. Treasury, and publish misleading articles online.