Social networks and financial scams: what is the relationship and how can you protect yourself?

Interpersonal relationships are constantly changing, and for about a decade now we have found ourselves in the age of communication through social networks. According to Kepios’ report, the number of people using these platforms worldwide will increase every year and exceed 5 billion users by the beginning of 2024. This significant figure represents a 5% increase compared to 2023, when vehicles will reach 266 million new users, or an average of 8.4 new users per second.

The billions of profiles in the universe of social networks can be viewed as opportunities from different perspectives, as they are potential customers, friends, contacts with common interests, or even colleagues. However, there is another side of the coin that we cannot forget: These people are also potential victims of cyber scams – another metric that records year-over-year increases and evolution in complexity.

For example, in Brazil, one of the most common types of fraud is financial fraud; especially scams that promise quick profits and high returns. They affect many citizens every year and can have serious, sometimes even irreversible, consequences on the lives of families.

Evidence of this was the finding of a study conducted last year by the Securities and Exchange Commission (CVM) with the Brazilian Association of Financial and Capital Markets Institutions (ANBIMA), which found that almost 50% of people will fall for cyber scams like the one below. This is nature.

As if our susceptibility to cyber attacks wasn’t worrying enough, scams are becoming increasingly difficult to detect, especially when dealing with vulnerable individuals who have no knowledge of the subject, and while gaining scalability.

A recent report from Sophos, a company I run in Brazil, showed that: Criminals combine two things, especially investments in cryptocurrencies and social networksImplementing so-called sha zhu pan scams in an “As a Service” model through the sale of scam packages on the dark web and expanding operations to new countries, including Brazil.

These kits originated from Chinese organized crime and provide the technical components necessary to implement a specific attack plan called ‘DeFi thrift’. How it works: Criminals often offer conservative investment “opportunities” similar to those in the financial market to people who have no knowledge of cryptocurrencies.

Victims simply link their crypto wallets to a brokerage profile with the expectation that they will receive significant interest on their investment. In reality, they are adding these wallets to a fake cryptocurrency trading pool that the scammers then empty.

This type of fraud is very old; Sophos had the first registrations in 2020 and was dubbed “CryptoRom” because it involved connecting with potential victims through dating apps and then convincing them to download cryptoactive trading scam apps.

For iOS users, these attacks required victims to download a well-designed alternative app that allowed criminals to bypass device security and access wallets. The company also discovered that scammers are using generative Artificial Intelligence (AI) to help engage vulnerable targets.

Although it is very scary to think that we need to be careful in any online relationship – whether on dating networks or not – the good news for us as Brazilian cybersecurity experts is that our country is still not that advanced when it comes to this issue. It is an investment in crypto compared to other places. According to data from the Federal Revenue Administration, we closed 2023 with 4 million people trading digital assets such as Bitcoin and Etherium, representing approximately 2% of the population.

Regardless of the rate of crypto adoption here, there are some precautions that can be taken to avoid falling for such scams. People need to be more skeptical about strangers reaching out via social networks like Facebook, especially if they want to quickly transfer the conversation to a private messaging app like WhatsApp (a tip that also applies to messaging apps).

Always be wary of quick money making schemes or cryptocurrency investment opportunities that promise big returns in a short time.Make sure you’re familiar with these traps and romance and investment scam tactics.

Brazil actually falls a bit outside this crypto scam scenario, but we have our own types of local attacks that criminals try to implement every day; such as PIX, telemarketing, credit and debit card approach and more recently, those focusing on investing in virtual betting games.

Don’t give bad luck a chance: Be wary of financial scams

Interest in games in our country is cultural; we grew up seeing our relatives having fun with such activities, regardless of the style. One of the current and problematic versions of this trend is online gambling. The topic has been so widely publicized that even the big names in influencer marketing have endorsed the different betting opportunities available today.

In some states in Brazil where it is illegal, the losses were so great that the police launched an investigation to prosecute the creators of these games. To contain, Last year, a bill regulating the taxation of online sports betting was approved in the Chamber. – including virtual casinos. Although the ban on slot machines remains in place, this new method could open up space for the legalization of games such as virtual bingo and Tigrinho.

It is still unclear whether these games will continue to be popular among Brazilians, but my duty as an expert is to warn the public on how to protect their money. Whether it’s a referral from a new social media link or a game, easy profits don’t come without work and preparation time. The secret is to always be skeptical, check the accuracy of the facts and do not send any amount unless there is 100% certainty about the seriousness of the transaction.