Crypto investors warned over social media scam in Bahrain

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People in Bahrain who have invested in stocks and cryptocurrencies are being warned against a new scam on social media.

WhatsApp groups promising high returns for cryptocurrency trading are actually fraud gangs that trick you into buying non-existent digital currencies through fake websites, according to Interior Ministry financial crimes department head Major Mohammed Al Abdulla.

“They do not start off by talking about the so-called investment opportunities from the get-go,” he said.

“They look for profiles of people who have invested in stocks and cryptocurrencies, and strike up a conversation with them.

“Usually, they are disguised as good-looking women and message men, pretending to be interested in them.

“At first, it starts with regular conversations, then once they feel like they have earned the targets’ trust, they slowly start bringing up the non-existent investment schemes, which are, of course, just a scam.”

Speaking on the ministry’s Amn podcast, Maj Al Abdulla pointed out that the most common platforms for the scams are Instagram and, especially, LinkedIn as to seem more professional.

Maj Al Abdulla

“Even as they engage you in conversations, they will be occasionally posting on their profiles of how they have made a lot of money and will get the victim to ‘naturally’ notice them,” he said.

“When the victims notice the posts, they also become naturally curious as to how they can make the same amount of money, after which the conman refers them to a so-called expert or professor of trading.”

The victims are then tricked into giving up their phone numbers which are added to a WhatsApp group.

The group has active participants and usually consists of about 25 users on the surface.

They add recommendations and share links to websites, encouraging victims to ‘register’ and invest a sum of money by buying a particular stock or brand of cryptocurrency.

It usually starts off with a small amount, but the group members will try to convince the victims to continue purchasing.

Different users will start posting messages on the group on how much they have profited from their investment in order to encourage more money from the victims.

The con goes on for about a month or two, where the victims periodically invest their hard-earned money, before they realise that something is amiss.

“All the members of the group, other than the victim, are part of a gang who are conspiring against you,” said Maj Al Abdulla.

“They own the website themselves, they own the cryptocurrency, it’s all fake.

“Some people have lost up to BD20,000 this way in just a matter of months. Once they come to the conclusion that the victim will no longer give them money, they block them, then move on to another unsuspecting individual.

“Do not register or invest without fully verifying the actual entities and platforms.”

Maj Al Abdulla encouraged people to join the Cyber and Financial Crimes WhatsApp group where such scams are highlighted to members of the general public.

The group is available in both Arabic and English. Those interested can join by clicking on the link of Cyber and Financial Crimes Instagram @acees_bh.

People have also been urged to report such crimes by contacting the Anti-Corruption and Economic and Electronic Security General Directorate by calling the hotline at 992.