Playbook of a Massive Fake Investment Scam

How CryptosLabs scam made €480 million

A CryptosLabs scam made €480 million by impersonating 40 well-known banks and fin-techs in France, Belgium, and Luxembourg.

Scammers setup fraudulent investment portals (Photo by Anna Nekrashevich)

Step by step

It all starts with luring targets through advertisements on social media masquerading as an “investment division” of the impersonated organization.

Primary goal is to collect contact information.

In the next stage, they are approached by fraudulent call center operators, who set up the investment scam through fake investment portals.

Initial deposits start small around €300, but scams incentivize victims to deposit more and more funds with an illusion of good investment results.

This continues until the victims realize they can’t withdraw any money in the end.

What can a bank or fintech do?

Social media impersonation has exploded by 1800% in the last five years.

It’s important to take down impersonation profiles on Instagram, Facebook and other social media platforms

It’s important to take down fraudulent customer care numbers on video platforms like YouTube.

Regular monitoring and enforcement can cut impersonation scams by 80% or more within three months.

About Eydle

The Eydle® Scam Protection Platform empowers enterprises to take down financial scams before they victimize customers. Eydle uses powerful visual analysis technology to find 50% more scams. No code, no installation, near-zero false positives. Eydle is backed by a world-class team of experts and leaders in cybersecurity and AI, and top talent from MIT, Stanford, and Carnegie Mellon.

Playbook of a massive fake investment scam was originally published in Eydle on Medium, where people are continuing the conversation by highlighting and responding to this story.

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