Mideast Retailers Struggle to Curb Scam Facebook Pages Peddling ‘Investment’ Opportunities

Facebook Scammers Target Users in the Middle East with False Investment Opportunities

Facebook scammers have been targeting users in the Middle East with fraudulent ads that promise investment opportunities in legitimate retail organizations. However, these ads are actually a ruse to trick consumers into giving their money to fraudsters. A recent campaign, which ran in December, involved 884 unique scam pages, with 60% of them targeting users in the Middle East and Africa region. While the campaign is now defunct, it highlights a dangerous trend that poses risks to both consumers and retailers.

Taking Advantage of Normalized Investment Opportunities

According to Sharef Hlal, head of Group-IB’s Digital Risk Protection Analytics Team for the Middle East and Africa, scammers are capitalizing on the increasing number of retail investors worldwide. The popularity of investment apps and online platforms has made it easier for individuals from different income brackets to put their money to work. Legitimate retail investment offerings from well-known brands are common in the Middle East, which scammers seek to exploit. By posing as recognizable companies with significant market presence and strong economic results, scammers try to lure potential investors.

A Broader Trend of Brand Impersonation

This latest campaign is part of a broader trend of scam websites impersonating reputable brands from the Middle East and Africa. According to researchers, there has been a 135% increase in such scams in 2022. Even investment experts have fallen victim to these scams, with prominent British broadcaster Martin Lewis warning his followers about ads using his name and face to scam victims on Facebook.

The Fallout for Retailers

The consequences of these scams can be extremely damaging for retailers. It can lead to a loss of consumer confidence in legitimate investment offerings or even create a misperception that the brands themselves are involved in the scams. Brand impersonation, which is often the first step in a more complex cybercrime operation, is a prevalent tactic used in credential harvesting. It is also the starting point for enterprise or customer fraud schemes.

Inside the Facebook MEA Investment Scam

In the disclosed campaign, researchers from Group-IB found ads placed in English, Arabic, and Spanish. The scam ads targeted Arabic-speaking users and enticed them with claims of earning millions by investing just $200. The scammers exploited users’ trust in well-known brands by offering investment opportunities in 35 market-leading companies from 13 countries. Scam pages often impersonated legitimate financial and insurance companies (30%) or transportation companies (25%).

Clicking on the scam ads led users to a page that mimicked the branding of a prominent company. Users were then asked to provide their names, email addresses, and phone numbers. They would receive daily emails from a supposed trading portal, pushing them to invest more. If users did not comply, they would receive calls from someone posing as a customer service representative, pressuring them to deposit funds. These scammers would ask for credit card and passport details along the way.

Victims frequently complained that communication stopped once they transferred money, and scammers blocked them on messaging platforms if they requested a refund.

Thwarting Brand Impersonation

To protect their brands from impersonation, retailers can take several steps. Bryon Hundley, vice president of intelligence operations at the Retail & Hospitality ISAC, suggests continuous monitoring of a brand’s online presence, including domains, search engines, mobile apps, social media, marketplaces, and email. Companies should have procedures in place to quickly take action against fraudulent activity.

Cybersecurity teams can also partner with other business units, such as customer service, to educate customers on how to identify and report fraud. Patrick Harr, CEO at SlashNext, recommends using an automated brand protection service to detect instances of impersonation. Retailers should also consider maintaining ownership of their brand’s trademark and seek the services of specialty firms that handle the full life cycle of brand protection.

Additionally, engaging employees to spot and report instances of brand impersonation can be helpful in preventing these scams.

Keywords: Scam, Facebook, investment opportunities, Middle East, brand impersonation