[UPDATED] Securities Exchange Commission warns against ‘Telegram scam’

THE Trinidad and Tobago Securities Exchange Commission (TTSEC) 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 statement 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 They will also promise there are no fees involved in the transactions and that the funds can be withdrawn within 24 hours.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 warns: 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.

It said people should always ensure the company was 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.

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

Fraud squad: Don’t get fleeced

Inspector Damian Thomas of the Fraud Squad said there have been several investment scams that engage the attention of the police, this latest scam is slightly different to the others.

“We usually have reports of people losing all kinds of money,” he said. “I remember one incident where a person invested his entire gratuity. In the first two months he was told he had an interest of $100,000. After that, he couldn’t find the person.”

He said locally, there have been several reports of pyramid schemes and investment schemes. He said the police enforces the larceny act, particularly larceny by false pretence, in many cases, to bring scammers to justice.

Section 34 of the Larceny Act says: “Any person who, by any false pretence, with intent to defraud, obtains from any other person any chattel, money, or valuable security, or causes or procures any money to be paid, or any chattel or valuable security to be delivered, to himself or to any other person for the use or benefit or on account of himself or any other person, is liable to imprisonment for five years.”

However, the police face a significant challenge in bringing foreign-based scamming schemes down.

“Locals who are trying to get your money usually leave a paper trail that would lead back to either one or several members of any group of scammers. So in that case, it is relatively easy for us to detect.

“Foreign-based scams pose a real challenge for us. Because, by the time the report is made to us and we get in contact with our counterparts in other jurisdictions, the money is long gone.”

Thomas said in those instances, the best the police could do was try to track down the holder of the account in which the victims’ money was sent.

“If it is a foreign entity who is operating in an online space, it is very difficult, unless we get involved immediately after the victim discovers he has been scammed.”

This story has been adjusted to include additional details. See original post below.

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.