Key Takeaways
- There are new scams every day, so be aware
- The scam starts with a sponsored ad on Facebook
- After clicking on the ad, users are redirected to a fake news article.
A new fraud called the Coin 1000 AI Scam is unfortunately becoming more prevalent. Our Scam educator, Lukas Jackson explains what it looks like and how to avoid it.
In today's digital world, financial scams have become more elaborate and convincing, preying on the vulnerabilities of individuals looking to improve their financial situations.
One particularly deceptive scam involves the use of a fake news article featuring a high-profile Australian figure, Gina Rinehart, to lure victims into investing in a fraudulent cryptocurrency platform, Coin 1000 AI.
Here’s a breakdown of how this scam operates, using the three images provided, and the red flags that users should be aware of to avoid falling victim.
1. The Facebook ad: Misleading and attention-grabbing
The scam starts with a sponsored ad on Facebook by "AVL Concept". The ad makes bold claims, suggesting that Gina Rinehart, one of Australia's most well-known billionaires, encourages all Australians to use a specific financial product.
The ad is designed to attract attention with its use of Gina Rinehart's image and the mention of banks and ATMs, suggesting that this is a legitimate financial solution endorsed by a credible figure.
Red flags
Unauthorised use of a public figure: Scammers often use recognisable faces to lend credibility to their claims. In this case, Gina Rinehart is mentioned to give the scam an air of authority and legitimacy.
Vague messaging: The ad does not provide clear details about the financial product, instead relying on curiosity and the lure of "encouragement" from a trusted figure to compel users to click.
2. The fake news article: Fabricated success stories
After clicking on the ad, users are redirected to a fake news article. This article features several fabricated stories of Australians making substantial profits using the Coin 1000 AI platform.
Testimonials claim individuals have turned small investments of $390 into thousands of dollars within weeks, all thanks to the "revolutionary" platform. The article also falsely claims that big banks are attempting to shut down the platform, adding a sense of urgency.
Red flags
Too-good-to-be-true claims: Statements like “I’ve turned $390 into $5,802 in two weeks” and “I’m making $3,000 a week” are designed to entice readers into thinking they can achieve similarly unrealistic returns with minimal effort.
Fabricated testimonials: The article is filled with fake success stories from non-existent people in various Australian locations, none of which can be verified. Scammers use these fabricated stories to create a false sense of security and trust. Urgency tactics: The article repeatedly emphasises that users should act quickly before the banks “shut it down,” a classic tactic used to pressure victims into making quick, unthought-out decisions.
3. The Scam Platform: Coin 1000 AI and the “Wealth Growth Profile”
Once users are convinced by the fake article, they are led to the actual scam platform, Coin 1000 AI . The platform presents users with a “Wealth Growth Profile”, which falsely claims to assess their financial readiness and motivation, scoring them based on meaningless metrics like "Mindset" and "Motivation." This mock profile serves no real purpose other than to give the impression that the platform is professional and tailored to the user.
Red flags
Too-good-to-be-true claims: Statements like “I’ve turned $390 into $5,802 in two weeks” and “I’m making $3,000 a week” are designed to entice readers into thinking they can achieve similarly unrealistic returns with minimal effort.
Fabricated testimonials: The article is filled with fake success stories from non-existent people in various Australian locations, none of which can be verified. Scammers use these fabricated stories to create a false sense of security and trust. Urgency tactics: The article repeatedly emphasises that users should act quickly before the banks “shut it down,” a classic tactic used to pressure victims into making quick, unthought-out decisions.
3. The Scam Platform: Coin 1000 AI and the “Wealth Growth Profile”
Once users are convinced by the fake article, they are led to the actual scam platform, Coin 1000 AI . The platform presents users with a “Wealth Growth Profile”, which falsely claims to assess their financial readiness and motivation, scoring them based on meaningless metrics like "Mindset" and "Motivation." This mock profile serves no real purpose other than to give the impression that the platform is professional and tailored to the user.
Lukas Jackson
Lukas Jackson is a leading expert in compliance with over 5 years of experience in crypto, AML/CTF regulations and scams prevention. Actively involved in initiatives focused on scam prevention and public education, Lukas has a passion for protecting individuals from online threats. With a focus on raising awareness and developing strategies to combat scams, Lukas is committed to driving efforts that help people recognise and avoid scams.
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