Criminal "gang" behind recent cryptocurrency scams

Saturday 14 December 2024

A criminal "gang" is behind cryptocurrency scams targeting islanders through fake online news articles, Jersey’s Cyber Security Centre has warned.

JCSC director Matt Palmer echoed warnings from the Government and the police regarding the fraudulent content, which has included images of politicians alongside false statements – such as “Jersey residents will start receiving income from taxes”.

The latest scams also try to imitate the look of the Jersey Evening Post's website, while the scammers attempt to trick islanders with claims that they can make large sums of money through a cryptocurrency service called NovusX.

Pictured: The scammers attempt to trick islanders with claims that they can make large sums of money through a cryptocurrency service called NovusX.

The JCSC has now confirmed that these fake adverts are part of a “broader campaign of cyber crime”.

Mr Palmer explained: “The same gang has targeted similar scams at other small jurisdictions, including the Isle of Man and Gibraltar, as well as South Africa. Like the Jersey adverts, these use fake testimonials from well-known local figures to make unrealistic claims.

“We can connect the gang behind this campaign to the September campaign that used images of the Bailiff [Sir Timothy Le Cocq] and late journalist Gary Burgess.

“However, it appears that the criminal gang may be using multiple associates to manage the scam.”

Pictured: The gang behind the recent scam has been linked to a previous scam that used images of the Bailiff and late journalist Gary Burgess.

Mr Palmer continued: “Cyber crime is a huge and well-resourced industry – with a value of $10 trillion dollars, it is bigger than the economies of Germany or Japan.

“According to the Jersey Fraud Prevention Forum, islanders lost £2.5m to scams between April and August this year.

“It’s likely that these types of scams will continue, even if the criminals change platforms or use different public figures.”

Noting the potential harm they could cause, Mr Palmer described the scams as “disheartening”.

“It’s also deeply unpleasant for those who have their image used without their consent,” he added.

“But it does mean that we can inform ourselves, spot the signs of a fraudulent advert, and protect ourselves from fraud.”

ADVICE...

Islanders should be wary of any advert or news article that:

• Makes exaggerated or too-good-to-be true claims. This includes adverts which claim you can make substantial amounts of money with little effort.
• Claims to have ‘genuine’ quotes from well-known public figures, but which don’t sound like that person. The language may be too formal, stilted, or use incorrect grammar.
• Implies a false sense of urgency, such as a time limited offer or dramatic news.
• Makes basic mistakes about Jersey. For example, describing the currency of Jersey as the ‘JEP.’

Additionally, islanders should:

• Only buy financial products from regulated financial institutions. They can be checked on the Jersey Financial Services Commission’s website.
• Make sure you fully understand what you are buying, who you are buying it from, and where they are based.
• Avoid clicking links in emails, websites and text messages unless you are sure they can be trusted.
• Check social media accounts are real by visiting the organisation’s website. For example, all States Members social media accounts are listed on the States Assembly website.
• Contact your bank immediately if you are not sure a transaction is legitimate.
• Don’t just rely on a password – use two step verification to protect your online activity.

If you think an advert may be a scam, you can report it to JCSC by emailing incidentreports@jcsc.je, or calling 01534 500 050.

If you’ve been the victim of a crime, you should report it to States of Jersey Police by calling 01534 612 612.