The CFTC’s Office of Customer Education and Outreach has issued a stark warning about the increasing prevalence of crypto-related scams propagated through popular messaging apps like WhatsApp and Telegram.
The advisory titled “Use Caution Responding to Messaging Apps,” highlights the manipulation of default app settings by fraudsters to add users to group chats designed for pump-and-dump schemes, among other scams.
According to the CFTC, the default settings of these messaging apps, as well as typical SMS text settings on smartphones, are being exploited to conduct fraudulent activities. This manipulation allows scammers to send a high volume of spam texts which could lead to substantial financial fraud.
Melanie Devoe, director of the CFTC’s Office of Customer Education and Outreach, emphasised the risks associated with these seemingly innocuous invitations to group chats promising outsized returns. “People who use these apps may not be familiar with the risks and frauds commonly associated with crypto assets,” Devoe said, warning that offers promising “300% or 1,000% returns with zero risk” are typically deceptive and dangerous.
The advisory also lays out specific steps for consumers to safeguard themselves from such threats:
- Do not respond to unsolicited messages or group chat additions.
- Delete any suspicious messages or group discussions immediately.
- Block the senders and report the texts as spam by forwarding them to 7726 (SPAM).
- Adjust privacy settings to protect personal information and minimize future spam risks.
Moreover, the CFTC encourages users to review and modify the settings on their messaging apps, mobile carriers, and devices to further restrict unsolicited communications. Many mobile carriers and device manufacturers offer additional services and apps to help block spam and filter unwanted communications effectively.
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