The FTC recently released a report cautioning people about scams, highlighting that investment scams alone have cost individuals approximately $3.8 billion in 2022. Despite the FTC's efforts to raise awareness about these scams, they continue to target unsuspecting victims around the world. Recently, Resecurity identified a massive investment scam network, dubbed Digital Smoke, that has been operating globally.
Diving into details
With its scam infrastructure, Digital Smoke has defrauded users from the U.S., the UAE, the U.K, the EU, China, India, Colombia, Saudi Arabia, Malaysia, Canada, Australia, and Singapore.
- The threat actors impersonated Fortune 100 organizations from the U.K and the U.S., including Baxter Medical, ABRDN, Lloyds Bank, and Eaton Corporation, among others.
- Most of the fraudulent schemes pertained to financial services, EV and EV batteries, oil & gas, renewable energy, healthcare, semiconductors, as well as internationally renowned investment corporations and funds with a global footprint.
Modus operandi
- Digital Smoke lured people into investing in non-existent products and investment plans supposedly backed by Fortune 100 companies and state-owned entities.
- The fraudsters established an extensive network of web resources and mobile applications. These resources are hosted on bulletproof hosting providers and jurisdictions that are difficult to access for immediate takedowns.
- In December 2022, over 350+ hosts were identified, with thousands of domains used for cloaking, hidden redirects, and payment gateway protection.
- AliPay, UPI, and cryptocurrencies were used to collect payments from victims, allowing for great flexibility in processing funds.
The bottom line
This incident serves as a reminder of the ongoing threat posed by investment scams and the importance of taking precautions when investing. Individuals should be wary of unsolicited investment offers, thoroughly research any investment opportunities, and consult with a trusted financial advisor before making any investment decisions. By staying informed and vigilant, people can better protect themselves from falling victim to these scams.
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