BlackRock warns of fraudulent schemes using its name

Asset management giant BlackRock has warned users of a rise in investment scams targeting its client base for its spot Bitcoin and Ether exchange-traded fund product.

In a July 29 X post, the New York-based asset manager warned users to be wary of scammers using its brand name to direct investors to dubious “education or investments.”

The company emphasized that its managers do not communicate with anyone via social media platforms such as WhatsApp and Telegram, and noted:

“Please exercise caution and do not proceed if you suspect fraudulent activity.”

Fraud tactics are evolving

Scammers often use fake email addresses and phishing sites, along with the real names of BlackRock employees, to trick users, according to a blog post on BlackRock’s website.

Victims are contacted via social media platforms, lured with attractive offers, and social engineering is used to get them to give away their confidential information.

The asset manager stressed that such schemes often involve requests for payment through third-party channels not affiliated with BlackRock, adding that “BlackRock would never request such payments.”

Scammers also use manipulated domain names that are slightly different from the original to trick victims – for example, blackrockk.com with an extra k redirects users to a malicious website.

The blog emphasized that all official emails of BlackRock employees end with “@blackrock.com,” and that changes made to the email domain name during communication were also a sign of a possible scam.

Another tactic highlighted by the asset manager was scammers inviting users to stock or crypto education sessions. These groups claim to offer trading signals and ask participants to invest in various “fake trading platforms.” When a user tries to withdraw funds, the scammers ask for additional funds.

The Washington State Department of Financial Institutions issued a warning about a similar scheme on July 17.

BlackRock’s warning comes as the market for Bitcoin and Ethereum-based exchange-traded funds has attracted billions of dollars in investment, with scammers cashing in on the hype.

Spoofing scams are a common phenomenon in the crypto market, where the identities of figures like Elon Musk are used to promote malicious schemes. Last year, the FBI warned of scammers impersonating executives of HashKey Group, a Singaporean venture capital firm.

According to a report prepared by the Belgian Financial Services and Markets Authority, 50% of the total fraud reports received by the institution in the first half of 2024 were cryptocurrency scams.