David Silva Ramalho analyses the growth of online fraud linked to digital advertising

The growth of online fraud has exposed structural weaknesses in the digital ecosystem, particularly in the social media advertising model.

In the latest edition of Sábado magazine, David Silva Ramalho, a lawyer specialising in cybercrime and managing associate at Morais Leitão, discusses the growth of online fraud associated with paid advertising on social media and the promotion of false investments, particularly in cryptoassets.

Growth of online fraud and weaknesses in digital advertising

“People assume that social media platforms apply a filter to the advertisements they accept in order to ensure they are not fraudulent schemes.” However, “this filter does not exist. Anyone can advertise, at very low cost, on social media, and may be doing so to attract victims to a fraudulent scheme.”

False cryptoasset investments and progressive manipulation of victims

According to the lawyer, who coordinates the Digital Defence team, a significant proportion of the most financially damaging fraud cases originates in seemingly legitimate advertisements promoting false investments, particularly in cryptoassets. The process is structured and gradual: “After an initial contact, which may be initiated by the criminals or even by the victims themselves, there is a process of follow-up and trust-building.”

These schemes, internationally known as romance scams or “pig butchering” frauds, rely on continuous manipulation and psychological reinforcement. “In many cases, attackers use software to gain direct access to victims’ computers and thereby create [genuine] accounts in their name.”

Cryptoasset laundering and the technical sophistication of criminal networks

For David Silva Ramalho, the most complex stage arises in the concealment and circulation of the diverted funds: “With such a large volume of victims, it is necessary to find a way to launder substantial amounts in cryptoassets. This is where, in my view, the greatest sophistication lies.”

Read the full article on online crime on the Sábado magazine website.