tl;dr
BlackRock, the world's largest asset manager, has issued a stern warning about the rise in crypto investment-related scams following the launch of its Spot Ethereum ETF. The company, managing $10.6 trillion in assets, cautions that fraudsters are increasingly using its name to deceive potential inve...
BLACKROCK ISSUES STARK WARNING AGAINST CRYPTO SCAMS
BlackRock, the world's largest asset manager, has issued a stern warning about the rise in crypto investment-related scams following the launch of its Spot Ethereum ETF. The company, managing $10.6 trillion in assets, cautions that fraudsters are increasingly using its name to deceive potential investors.
BlackRock emphasizes that it never solicits investments or payments via social media and advises vigilance against fraudulent activity. The warning outlines sophisticated methods used by scammers, including impersonating BlackRock executives, creating fake platforms, and employing social engineering techniques to manipulate individuals.
The warning is particularly pertinent as interest in BlackRock's new Ethereum ETF and Spot Bitcoin ETF has surged, making the company a prime target for scammers seeking to exploit the growing enthusiasm for crypto investments.
In a post on X, BlackRock stated, “There has been a spike in investment-related scams, including directing users toward crypto investment-related websites and/or social media platforms such as WhatsApp or Telegram.” Moreover, the company emphasized that neither BlackRock nor its executives ever solicit investments or payments via social media.
The organization advised, “Please remain vigilant and if you suspect fraudulent activity, do not proceed.” Further details on the asset manager’s website outline the sophisticated methods used by scammers. They also noted that these fraudsters invest time in researching their targets to build a rapport and gain trust. In addition, they may present themselves as charming and knowledgeable, using legitimate-sounding names and information to appear credible.
Impersonation is another prevalent strategy, with scammers using the names of actual BlackRock employees or executives to appear legitimate. However, the firm affirmed that their executives never reach out to potential investors via social media. In addition, fraudsters behind crypto scams use platforms like WhatsApp and Telegram to offer fake training sessions promising high returns.
Time pressure is another strategy, where scammers create a sense of urgency by offering time-limited investments. This strategy plays on the fear of missing out (FOMO). Hence, it pushes individuals to make quick decisions without thorough verification.
Additionally, social engineering techniques are employed to manipulate individuals into divulging confidential information. Spoofing, where messages, emails, or phone calls are made to appear as if they come from legitimate companies, is another method used to deceive potential victims.
The warning from BlackRock comes at a crucial time as the interest in their new Ethereum ETF, alongside their Spot Bitcoin ETF, has surged. This heightened attention has made the ETF issuer a prime target for scammers aiming to exploit the growing enthusiasm for crypto investments.
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Industry: TRADE & SERVICES
Sector: SERVICES-EDUCATIONAL SERVICES
Market Cap: 414,731,000
Dividend Yield: None
EPS: None
Price Change: -0.38
Price: 46.66
P/E Ratio: -0.0593
Volume: 5,617,797,000
52 Week High: 6.02
52 Week Low: 3.683
Beta: 0.197