The Washington State Department of Financial Institutions (DFI) has issued a consumer alert reporting multiple cryptocurrency scams involving fake “professors” on Whatsapp and Telegram, ChainCatcher reported.

The scam involves companies claiming to be higher education institutions offering courses centered around investing in cryptocurrencies. Investors are placed in Whatsapp or Telegram groups run by colleagues claiming to be professors, consultants, and assistants.

The companies also offer high-value loans or lines of credit, helping investors join exclusive “VIP clubs.” When investors try to repay their loans, they are told their accounts will be frozen until outside funds are provided, and receive threatening messages and claims for legal action.