Shafaq News/ Fraudulent online trading platforms are spreading rapidly in Iraq, targeting young people with false promises of fast profits via anonymous accounts on WhatsApp and Telegram, cybersecurity and financial experts warned.

The schemes often begin with small payouts, typically under $25, framed as “initial profits” to build trust. Victims are then asked to pay “guarantee fees” to access larger returns.

Demands escalate quickly, with participants frequently urged to recruit others, following a classic pyramid structure. Scammers often use female profile images and operate through untraceable messaging apps. Once enough money is collected, the accounts vanish.

In some regions, total reported losses exceed $750,000.

In Kirkuk and other provinces, young Iraqis have reported losing their savings. One scheme linked to the now-defunct platform “Unimart” left dozens financially devastated after being promised life-changing returns.

“They offered daily profits at first, and I received small amounts. That made me invest more. Then came excuses—technical issues, market shifts—until the platform shut down. No responses, no refunds,” Ahmed al-Jubouri, a victim, told Shafaq News, adding that some participants suffered health complications due to psychological distress.

Economist Youssef Mahmoud stressed that credible trading platforms must be licensed by internationally recognized regulators. “No serious investment opportunity arrives via anonymous messages or demands upfront payments without legal documentation,” he told Shafaq News.

Cybersecurity specialist Abdul-Sattar al-Ali linked the spread of such fraud to Iraq’s low digital awareness. “These platforms thrive where users lack understanding of online risk,” he cautioned. “Transferring money or personal data to unverifiable sources is extremely dangerous.”

Old Tricks, New Looks

Community affairs observer Abbas Hussein noted that these scams mirror earlier operations in Iraq, such as “Alaako” and “Wisamko,” which exploited regulatory voids during the 1990s.

“Today, it’s the same logic: exploitation—just behind a screen instead of a storefront,” Hussein remarked. “Failing to learn from the past will only invite more damage.”

Analysts are calling for stronger regulation, digital literacy campaigns, and legal mechanisms to support victims. Without action, they warn, online investment scams will continue to evolve, targeting even more Iraqis through increasingly sophisticated methods.