Australian financial expert Scott Pape, known as the Barefoot Investor, has uncovered a sophisticated DeFi scam involving the use of his stolen identity.
Pape revealed how scammers exploited his name and image to deceive his followers into fraudulent cryptocurrency schemes. Taking matters into his own hands, Pape and his team have been actively working to expose these operations while reporting hundreds of fake Facebook groups involved in such scams.
Scammers use fake profiles and groups to target victims
Pape discovered that his name and likeness were used across numerous fake Facebook profiles and groups to lure unsuspecting victims. These groups claimed to offer investment advice and opportunities, but their real goal was to defraud people. Frustrated by the slow response from social media platforms in removing these fake accounts, Pape took direct action.
One of the fake groups using Scott Pape’s name. Source: Facebook
Using a fake name, he interacted with the scammers to gain insight into their methods. Within hours of contacting one of these fraudulent Facebook pages, Pape was invited to share his phone number and join an exclusive WhatsApp group called “DB Wealth Institute.” This group posed as a legitimate financial institution offering investment services and advice.
Fake companies create an illusion of legitimacy
Pape researched DB Wealth Institute online and found a trail of automated press releases that presented the group as a legitimate organization. These press releases appeared on platforms like Yahoo Finance, Forbes, and LinkedIn, claiming the institute was founded in 2011 by “Professor Cillian Miller” and had trained thousands of students in financial strategies.
The group also promoted a tool called “AI Financial Navigator 4.0,” which supposedly enhanced trading using artificial intelligence and big data. However, further investigation revealed warnings from U.S. regulators about similar scams involving fake “wealth institutes.” The typical scam involved the professor providing fraudulent trading signals to members while an assistant handled communications. Once the scammers collected enough funds, they would disappear, rebrand, and target new victims.
Cryptocurrency fraud on the rise
Pape’s experience highlights the growing prevalence of cryptocurrency scams, especially on platforms like WhatsApp and Facebook. Despite efforts by regulators and authorities to warn the public, many individuals continue to fall victim to these schemes. Pape’s decision to engage with the scammers aims to shed light on their tactics and help prevent others from being misled. Authorities advise the public to remain vigilant and avoid sharing personal or financial information with unverified entities.
The post Barefoot Investor Exposes DeFi Scam After Identity Theft first appeared on Coinfea.