The US Securities and Exchange Commission has issued a fresh warning that crypto-related scams are increasingly operating through private group chats targeting retail investors.
The alert was released by the SEC’s Office of Investor Education and Assistance on December 22 amid rising reports of losses linked to messaging platforms.
Regulators said fraudsters are posing as trusted experts, including financial gurus, professors and senior executives, to build credibility within closed groups.
These fake group chats are often promoted via social media advertisements or unsolicited invitations designed to appear exclusive and authoritative.
The SEC warned that scammers frequently fabricate entire online personas to convince investors they are receiving professional guidance.
Artificial intelligence tools, including deepfake videos and automated messaging, are increasingly being used to enhance deception.
Victims are typically steered towards crypto trading strategies, token offerings or automated systems that promise consistent or guaranteed returns.
The alert said investors are then directed to polished websites or mobile apps that display fabricated account balances and falsified transaction histories.
Scammers often reinforce trust by making false claims of regulatory approval or compliance.
When investors attempt to withdraw funds, they are met with unexpected demands for additional payments or fees.
The SEC highlighted enforcement actions including SEC v. Morocoin as examples of how such scams operate.
In that case, defendants allegedly used social media advertising and WhatsApp group chats to solicit investors.
The regulator said investors were directed to fake trading platforms that falsely claimed to hold licences from authorities including the SEC.
The defendants tricked investors into investing in phony Security Token Offerings that the defendants falsely promoted as zero-risk, high-profit opportunities by legitimate businesses.
The SEC said.
The defendants then allegedly charged investors bogus fees to withdraw their money, falsely telling investors that their accounts were about to be frozen due to SEC investigations.
The SEC said.
The alert identified warning signs such as requests to send crypto assets to unknown wallets or individuals.
The SEC reiterated that guaranteed returns do not exist in crypto markets where higher rewards usually involve higher risk.
Regulators stressed that legitimate crypto activity operates within existing securities laws using transparent and verifiable systems.