Beware of Scams: BlackRock Confirms No Social Media Investment Solicitations

American multinational investment giant – BlackRock – has recently reported a significant increase in investment-related scams, particularly those that direct individuals to crypto investment websites or social media platforms like WhatsApp and Telegram.

The company has cautioned its investors when engaging with individuals, websites, or social media platforms using BlackRock’s brand to offer training or investment opportunities.

BlackRock Cautions Investors

In its official update on July 29th, BlackRock said that the asset management behemoth and its executives never reach out to people through social media platforms to propose investments or solicit payments.

“BlackRock and our firm’s executives never contact anyone through any social media platforms (including WhatsApp and Telegram) with investment offerings or to solicit payment of any kind. Please remain vigilant and if you suspect fraudulent activity, do not proceed.”

BlackRock has captured a significant portion of trading volume among the 11 spot Bitcoin ETFs launched in January. Its spot Ether ETF has also demonstrated strong performance so far. This positioned BlackRock’s dominance in the crypto space.

In a recent interview with Bloomberg’s James Seyffart, BlackRock’s head of digital assets, Robert Mitchnick, noted that the asset manager’s institutional investors and wealth advisory services continue to gain momentum. He even went on to say that direct client demand has been the main catalyst behind this momentum.

As a result, the growing demand for BlackRock’s funds has unfortunately attracted fraudsters who prey on unsuspecting investors using various deceptive tactics.

BlackRock’s Growing Funds Attract Fraudsters

The scams often involve phishing websites that mimic legitimate BlackRock platforms, aiming to steal personal and financial information.

Additionally, fraudsters impersonate BlackRock employees and reach out to potential victims via email or social media to offer fake investment opportunities. These fraudulent schemes exploit the high interest in BlackRock’s successful ETFs, capitalizing on investor enthusiasm to perpetrate their crimes.

Tactics used by fraudsters also include using social media for alleged training programs, fake email addresses, and counterfeit documents that mimic genuine BlackRock materials. They also employ time pressure, social engineering, and spoofing techniques to create a sense of urgency and legitimacy.