A recent report by Group-IB and the UAE Cybersecurity Council has uncovered a sinister scheme targeting Facebook users in the Middle East and Africa (MEA) region. Scammers have been posing as reputable retail organizations, offering fake “investment opportunities” to unsuspecting consumers. The research revealed that the campaign, which occurred in December of last year, consisted of 884 unique scam pages, with 60% of them targeting users in the MEA region.
The misleading advertisements drew users in with promises of funding opportunities for legitimate retail investments. However, instead of investing their money wisely, victims ended up losing their hard-earned cash to cyber scammers. Sharef Hlal, the head of Group-IB’s Digital Risk Protection Analytics Team for MEA, explains that this type of fraud is particularly dangerous because the scammers impersonate well-known brands that are popular within the region. Seeing the popularity of legitimate retail investments in the area, cyber scammers saw an opportunity to exploit unsuspecting victims.
The alarming rise in brand impersonation scams is a growing concern for both consumers and retailers. A recent study found that scam websites posing as reputable brands from the Middle East and Africa increased by 135% in 2022 alone. Even investment experts are not safe from these schemes, as demonstrated when British broadcaster Martin Lewis warned his followers of ads using his name and face to scam victims.
The repercussions of such scams can be highly damaging to brands. Retailers risk losing consumer confidence in their legitimate investment offerings. Even worse, victims may mistakenly associate the scams with the actual brands, tarnishing their reputation. To combat this growing threat, experts urge retailers to be vigilant and proactive in protecting their brands.
John Bambenek, principal threat hunter at Netenrich, emphasizes the need for brands to stay on top of new domain registrations and websites. By actively searching for impersonations and taking them down, brands can prevent cyber scammers from deceiving consumers. Bryon Hundley, vice president of intelligence operations at the Retail & Hospitality ISAC, highlights the prevalence of brand impersonation in credential harvesting, which often serves as a gateway for cybercrime operations.
The investigation into the Facebook MEA investment scam revealed that the scammers targeted users by placing ads in English, Arabic, and Spanish. Arabic-language scam ads and websites lured users in with enticing claims of earning millions by investing just $200. To exploit victims’ trust in renowned brands, the scammers offered investment opportunities in 35 market-leading companies from 13 countries. The scam pages often displayed the logo and branding of the impersonated company, with financial and insurance companies accounting for 30% of the scams.
Once users clicked on the ads, they were directed to scam pages that requested their personal information, such as names, email addresses, and phone numbers. Victims would then receive daily emails from a supposed trading portal, urging them to invest more. If they didn’t comply, they would receive calls from individuals claiming to be customer service representatives, pressuring them to deposit funds. Along the way, the scammers would collect credit card and passport details.
Group-IB researchers discovered that once victims transferred their money, communication with the supposed trading portal would cease. Additionally, victims would be blocked on messaging platforms when they requested a refund. This left users feeling hopeless and defrauded.
To protect their brands from impersonation, retailers should consider implementing several preventive measures. By continuously monitoring their brand’s online presence, including domains, search engines, mobile apps, social media, marketplaces, and email, companies can quickly identify and take action against fraudulent activity. Partnering with third-party firms that specialize in brand protection can provide valuable expertise and scalability. Educating customers on how to identify and report fraud, through collaboration between cybersecurity teams and customer service, can also be effective in mitigating risks.
Organizations can further enhance their brand protection efforts by utilizing automated brand protection services and ensuring their ownership of trademarks. Specialized firms that handle the entire life cycle of brand protection can provide additional support for comprehensive brand security. Finally, training employees to detect and report instances of brand impersonation can help create a company-wide culture of vigilance.
As brand impersonation scams continue to grow in scale and sophistication, it is crucial for retailers to stay one step ahead of cyber scammers. By taking proactive measures to protect their brands and educate their customers, retailers can safeguard their reputation and maintain consumer trust in the face of these pervasive schemes.