BlackRock Alerts Investors About Rising Crypto Scams

BlackRock, the world’s largest asset manager with $10.5 trillion in assets under management, has issued a warning about the increasing prevalence of cryptocurrency scams.

The firm advises caution when encountering individuals, websites, or social media platforms claiming to offer training or investment opportunities under the BlackRock brand. In recent months, there has been a notable uptick in scams directing users to fraudulent crypto investment websites or platforms such as WhatsApp and Telegram.

BlackRock Sounds Alarm on Cryptocurrency Scams

In a recent statement, BlackRock highlighted a surge in investment-related scams exploiting its name and reputation. The asset management giant, which reported nearly $10.5 trillion under management (AUM) in the first quarter, took to social media platform X to caution the public.

“We have observed a significant increase in scams involving our brand, particularly those directing users to crypto investment-related websites and social media platforms like WhatsApp and Telegram,” the company stated.

BlackRock emphasized the importance of vigilance, advising against interacting with individuals or platforms purporting to represent the firm and offering investment training or opportunities. “BlackRock and our executives never initiate contact via social media to offer investments or solicit payments. Be cautious and avoid proceeding if you suspect fraudulent activity,” the statement added.

Common Tactics Employed by Scammers

Scammers frequently impersonate BlackRock employees or senior executives, luring victims with promises of high investment returns. “Typical schemes involve inviting individuals to stock or crypto training sessions on social media and offering trading signals,” BlackRock warned. “Victims may be encouraged to trade on fake platforms and asked to deposit additional funds to withdraw non-existent investment returns.”

This rise in fraudulent activities coincides with the growing interest in cryptocurrency investments. BlackRock’s spot bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust (IBIT), has garnered $23 billion since its January launch, becoming the leading spot bitcoin ETF in the U.S. Furthermore, BlackRock has expanded its crypto offerings with the introduction of an ether ETF.

Also Read: Phishing Alert: How Scammers Are Using Fake Zoom Links to Steal Crypto

BlackRock’s Evolving Stance on Bitcoin

Larry Fink, CEO of BlackRock, has transitioned from a skeptic to a proponent of Bitcoin, now referring to it as “digital gold.” He advocates for BTC as a valuable asset for investors seeking protection against economic instability and currency debasement.

“I believe Bitcoin should be considered an alternative investment in the context of global economic optimism,” Fink recently commented. His endorsement underscores Bitcoin’s potential role in diversifying investment portfolios and safeguarding against financial uncertainties.

Also Read: How Deepfake Scammers Are Draining Millions from Crypto Users