CFTC Warns of Fraud Risks in Messaging Apps

The U.S. Commodity Futures Trading Commission (CFTC) has reminded consumers to look out for messaging applications, as fraudsters may use such aspps to scam people out of their assets, especially cryptocurrencies.

In its customer advisory Use Caution Responding to Messaging Apps, the CFTC mentions that the default settings of popular messaging apps, such as WhatsApp and Telegram, enable fraudsters to invite potential victims to scam group chats randomly or target them with phone numbers. Default messaging settings on smart phones also allow one to receive a lot of spam text.

Melanie Devoe, Director of the CFTC's Office of Customer Education and Outreach, believes that the app users may not be aware of the risks associated with crypto-assets.

Commonly used messaging apps allow anyone who knows your phone number to call you or invite you to a group chat.

In these group chats, which are used for fraudulent activities, you'll see other members discussing and recommending investment opportunities related to leveraged trading, cryptocurrencies, 100% or even 1,000% profits, and artificial intelligence technology. But it's all fake.

“Receiving a group message promising 300% or 1,000% returns with zero risk or getting in on a supposed crypto opportunity, can be enticing, but it is best to not engage.” 

The regulator offers suggestions for ways of responding. When people receive messages or group invitations from strangers, do not reply, delete the message or group, and block the sender.

To avoid receiving scam messages in the future, check and change the privacy setting of text, messaging apps and your phone to protect personal information. You can also make good use of the SMS spam-blocking or call filtering apps provided by your communications carrier.