Securities Exchange Commission warns against 'Telegram scam'

The TT Securities Exchange Commission (SEC) is warning people to be wary of a new investment scam that promises thousands of dollars within a matter of hours through fake investment groups on Telegram. It issued the warning in a media release on November 26.

Telegram is a messenger platform, much like WhatsApp where people can send messages, have group conversations and share files.

Scammers are using this platform to swindle unwitting victims out of their hard-earned cash.

The set-up

TTSEC said scammers may create fake profiles, web pages and platforms to engage would-be victims. The profiles will advertise on social media promising unrealistically high returns on investments in short periods of time. For example, one may say: "Earn $10,000 on a $1,000 investment within 24 hours.”

If the victims take the bait, the scammers will pose as representatives of the fake company and engage them through messages. The “representative” will double down on the promise of high returns in quick rotation. Then they will send a link to join an investor group on Telegram.

When the victim joins the group, the scammers will give instructions to deposit money in a specified bank account.

They will urge victims to deposit as soon as possible, once again promising high-yield returns if they do. They will also promise there are no fees involved in the transactions and that the funds can be withdrawn within 24 hours.

The take

The scam begins to reveal itself after the victims deposit their funds.

First they will be given an illusion of legitimacy, providing “proof” of a deposit to the representative and a link to the fake company’s investment platform. This is usually through a site which shows various cryptocurrency investments and login credentials for an account in the investor's name.

When victims log in, they will see a huge balance, signifying a profit, either in TT or US currency.

Everything will look great, until it’s time to withdraw the profits.

When victims request the funds, they will be told there is a withdrawal fee, often more than TT$1,000 The representative will continue to demand fees from the victim, saying the additional costs must be paid before the investment returns can be released.

That process continues until victims become suspicious and try to contact the representative for a refund. The representative will then “ghost” the victim – placating the victim while gradually reducing communication until eventually stopping all contact.

SEC: be vigilant

“People are strongly advised to be vigilant and always conduct due diligence on any unsolicited communications or advertisements in relation to any investment products,” the SEC warned.

The release said that people should always ensure the company is registered with the TTSEC.

The TTSEC added that with AI technology constantly evolving, it has become easier for scammers to impersonate legitimate businesses and provide official-looking documents.

"The scammer may produce documents that purportedly appear to come from legitimate financial institutions and official TT government organisations, including the SEC"

All legitimate investment firms must be registered under the Securities Act.

“If the entity or person is not registered under the act, you run the risk of not getting back your initial investment.”

TTSEC advised that people should always verify with the named entities before any transaction.

The TTSEC asked the public to report any tips, scams or suspicious investment offerings to marketcomplaints@ttsec.org.tt.