A man lost $20,000 in an investment scam and nearly transferred another $40,000 before a police intervention, Stomp reported, highlighting a coordinated WhatsApp fraud operation that utilized fake Hong Kong financial executives, artificial intelligence trading platforms, and physical merchandise rewards to extract funds.
The victim, identified by Stomp as Chen, initially downloaded a legitimate investment platform application on July 15. Shortly after, a woman contacted him via WhatsApp, claiming a partnership with the platform and inviting him to join a 78-member chat group named Market Insight Academy S20. Within this digital enclosure, participants were introduced to individuals posing as a professor and a chief investment officer associated with a Hong Kong financial services firm.
Chen Loses Thousands in Stock and AI Scams
- Initial Losses: Chen transferred a total of $44,000 across two stock investment platforms between Sept 3 and subsequent weeks before values plunged.
- AI Scheme Extraction: Between Oct 6 and Oct 13, Chen deposited an additional $20,000 into an AI-managed project via the Act Sentiqra app promising daily returns of 7% to 14%.
- Interrupted Transfer: A blocked transaction followed by a call from the police Anti-Scam Centre prevented a subsequent $40,000 cryptocurrency transfer.
The group steered members toward a purported Securities Market Development Plan, or EQDP, encouraging stock purchases on two platforms starting Sept 3. When those recommended asset prices dropped, group representatives instructed members to hold their positions, attributing the decline to a deliberate safety mechanism designed to suppress prices temporarily.
To incentivize participation, the administrators implemented a point system tied to class attendance and screenshot verifications. These points converted into physical gifts, including supermarket vouchers, neck massagers, and a robot vacuum cleaner, alongside mooncakes distributed during the Mid-Autumn Festival. Chen later concluded that these rewards were funded directly by capital contributed by scheme participants.
Following the stock phase, the group introduced an artificial intelligence investment project restricted to 300 slots via an application called Act Sentiqra. Promising daily returns ranging from 7% to 14%, Chen transferred $20,000 through designated bank accounts between Oct 6 and Oct 13. He prepared an additional $40,000 wire for recommended cryptocurrency purchases when his banking transaction failed, prompting the call from the police Anti-Scam Centre alerting him that recipient accounts were flagged for receiving scam proceeds.
| Investment Phase | Platform / App | Promised Return | Capital Transferred |
|---|---|---|---|
| Initial Equities | Two Unnamed Platforms | Not Specified (EQDP) | $44,000 |
| AI Project | Act Sentiqra | 7% to 14% Daily | $20,000 |
| Halted Crypto | Cryptocurrency Transfer | Not Specified | $40,000 (Attempted) |
An investigation revealed that the Hong Kong financial services firm referenced by the scammers, Landmark Family Office Limited, had been entirely impersonated. The firm issued a LinkedIn statement clarifying that unauthorized chat groups in Singapore were illicitly utilizing its corporate identity and the name and photograph of its chief investment officer.
Stomp noted that the Singapore Police Force previously issued warnings regarding related “pump and dump” operations where bad actors build credibility within social media networks before driving victims toward specific overseas equities. Police data indicates that since July 1, authorities received at least 21 reports concerning such operations, resulting in five victims losing over $750,000 within a single week. Local authorities confirmed that formal reports have been lodged and investigations remain ongoing.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
