The North Dakota Securities Department issues a warning about "fake investment education" cryptocurrency scams

ChainCatcher news, according to News.bitcoin, the North Dakota Securities Department has issued a warning that some "investment education foundations" claim to teach investors about cryptocurrency and stock knowledge, but are actually scams. These scams use deceptive tactics, including "risk-free" trials and fake loans, to persuade victims to invest and pay excessive commissions.

These scams often start with social media ads that lead potential victims to WhatsApp groups operated by fake founders and automated bots. In these groups, the so-called founders offer investment courses and then introduce a fraudulent cryptocurrency exchange. Investors initially receive "free" tokens to test an AI trading bot, which falsely generates profits.

Encouraged by the illusion of success, people deposit real money, and if they are short on funds, the scammers direct them to fake loan providers on Telegram. These loans are directly credited to the fraudulent exchange, but victims soon discover that they cannot withdraw any funds unless they repay the loans or pay fake commissions. The scam freezes accounts under the pretext of regulatory issues, and then the scammers shut down the business and rebrand under a different name. To gain credibility, the scammers may present real government documents claiming registration with the U.S. Securities and Exchange Commission (SEC) and the U.S. Department of the Treasury, and publish misleading articles online.