In April 2023, a victim we will call Carmen encountered a Facebook advertisement that used fake news tactics to promote a supposed investment in Tesla. The advert claimed that this lucrative opportunity was already helping many Maltese families achieve financial success. Enticed by the promise of high returns, Carmen decided to invest a small initial amount of €250 and provided her bank card details to the platform.
Within a few days, Carmen was contacted via WhatsApp by individuals encouraging her to invest more money. Growing sceptical of the arrangement, she requested a full refund of her initial deposit. However, the fraudsters used psychological manipulation to convince her that her investment had already grown to over €400. They claimed she needed to open a third-party account with a well-known crypto exchange to receive her funds and profits.
The deception intensified as the scammers instructed Carmen to increase her local bank account balance, claiming that a higher balance was necessary for a ‘verification’ process before her gains could be released. They also attempted to open an account with a well-known digital bank in her name, leading her to disclose confidential personal information and banking details. Most critically, Carmen was persuaded to download an application that gave the fraudsters total control and access to her mobile device.
Once Carmen followed the instruction to transfer a substantial amount of money into her local bank account, the scammers used their remote access to begin withdrawing funds. In a span of just three hours, they successfully made six withdrawals totalling €8,000. Fortunately, the bank’s security systems detected the suspicious activity and managed to block seventeen other attempts totalling approximately €50,000. Despite the bank’s quick intervention to stop further withdrawals the next day, Carmen still suffered a total loss of €8,000 from an initial ‘investment’ of only €250.
Warning signs and red flags:
- Social media advertisements often use reputable brand names or celebrity endorsements to promise unrealistic returns.
- Initial contact with a purported financial adviser is generated through social media rather than official channels.
- All communication takes place through messaging apps and electronic devices with no option for in-person meetings.
- The platform provides false indications of substantial profits occurring over a very short period.
- Fraudsters may request that you download software that gives them total control of your mobile or electronic device.
- There is a sense of urgency created by requests for additional payments to access your own funds.
Disclaimer: This account is based on a real-life case investigated by the authorities. While the events and figures described are factual, names have been changed to protect the privacy of the individuals involved.