Cryptocurrency Fraud Trick Hits Instagram Users In Sweden Duping Them To Exchange Fiat Funds

Cryptocurrency Fraud Trick Hits Instagram Users In Sweden Duping Them To Exchange Fiat Funds

Cryptocurrency Fraud Hits Instagram Users In Sweden

Individuals are being scammed by a group of fraudsters that promotes products from brands such as Gucci, Apple or Louis Vuitton for spot prices that range from €50 up to €300. After selecting the products they want, they have to exchange fiat currencies for digital assets. Clearly, users never get their purchase and the funds are lost.

Scammers Target Swedish Individuals

According to a recent report released by Forbes, law enforcement authorities have registered several similar cases during the last weeks. Most of the customers targetted are 25 years old and with a migrant background. There are some profiles on Instagram with a large number of followers that attract users to purchase some luxury goods.

The customer interested in purchasing these objects starts talking via DM with the fraudster, that requests the interested user to process a payment using virtual currencies rather than with a bank account. The fraudster explains that due to the fact that this is an international transfer, the banking services are limited. Thus, they convince the user to make a transfer using cryptocurrencies.

According to Magnus Karlsson, users should conduct careful research before making an online purchase. It is always important to confirm that the funds are being transferred to the correct company or individual. Once the transaction is processed through Instagram using virtual currencies, the stealer does not answer direct messages anymore.

A compliance expert from a Nordic Cryptocurrency Brokerage Platform commented about this issue:

“As our customer service engages way quicker with the users than the Police – our employees flag suspicious accounts or wanted to engage with Instagram customer service via their support email. Unfortunately as the customer service of Instagram is literally non-existent, it increases the delays to take countermeasure.”

Moreover, he explained that there is also a significant delay between the day in which the fraud happened and the day in which the police will spot the suspicious pattern. A spokesperson from Instagram informed that they have already blocked accounts related to these scams.

Instagram would clearly have to do more to avoid these issues and attacks to its community of users around the world.