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CRYPTOCURRENCY SCAMS

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CRYPTO SCAMS – MAIN TOPICS

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CRYPTOCURRENCY SCAMS
– RECOVERY OF FUNDS

What is a cryptocurrency scam? This is an investment fraud whereby criminals steal money from unsuspecting investors trying to invest in digital currency. Also, several of the cryptocurrency platforms are not under the regulations of the Financial Conduct Authority (FCA) and this implies that they aren’t under the protection of the Financial Services Compensation Scheme making it somewhat difficult for the recovery of funds after a scam except you employ the services of a professional money recovery company.The cryptocurrency industry has experienced some tremendous growth within the last couple of years with the value of a digital currency like Bitcoin growing exponentially. This has made several people invest in it and use it as a means of business transaction.However, the successes experienced in the crypto market have also made it a good platform for cryptocurrency scams to thrive online. Surprisingly, in 2021 – cybercriminals scammed people about $14 billion in value of crypto.

Therefore, there is a need to be careful because as prices appreciate – the number of scammers increases, thereby, luring unsuspecting victims to platforms that promise bogus returns on investments. A report on CBC said that there has been an increase in cryptocurrency scams from 1000 percent since 2020 with an average theft moving $500 to $2000 Those who are the most affected are the newbies lured and distracted to invest in dubious online trading platforms.

So, if you wish to know more about cryptocurrency scams, let’s dig in

HOW DOES A CRYPTOCURRENCY SCAM WORK?

Since cryptocurrency is a virtual or digital currency created to act as a medium of exchange in transactions – many scammers now use this opportunity in defrauding people. This is how it works! Scammers will cold-call unsuspecting victims and make use of social media platforms like Facebook, Instagram, and others to advertise their nefarious get-rich-quick investment opportunities.

The victims are then told to visit certain crypto websites that they have already created and asked to sign up providing personal details such as credit card details, driving license (which are used in opening a trading account) After this, the victim is told to make an initial deposit. After a while – they are told to make more investment deposits to earn more profits. After several deposits from victims, the scammers deactivate the website and go into thin air and the victims will no longer be able to reach them.

CAN YOU GET SCAMMED WITH CRYPTOCURRENCY?

The answer is a simple yes! With the rise in the popularity of digital currency among many investors, cryptocurrency scam is also rapidly on the increase.

Besides, there’s also an increase in Bitcoin blackmail email – a situation whereby scammers hack into your pc while visiting adult sites. They record it and later threaten to circulate the video to friends and family at a certain time. They now request you to make some payments into their Bitcoin account – please ignore it, it’s a scam.

Also, these fraudsters target iPhone users (tinder crypto scam) on Tinder – a popular dating site. Here they meet you as potential business partners but later request to continue the conversation on another platform where they perpetuate their dubious acts.

HOW DO I AVOID CRYPTO SCAMS?

Crypto scams will continue to be on the increase but there are tips provided by our dedicated team at Golden Recovery who specialize in helping victims of fraud or scams.

You can follow these tips to avoid cryptocurrency scams, check out the following tips;

  • You must protect your wallets by not sharing your private keys to engage in any investment. The keys can be kept offline where they can’t be hacked
  • Be wary of social media posts advertising unrealistic returns on investments – it’s probably a scam. They use images of celebrities even without their consent to deceive unsuspecting investors.
  • Do not put under any form of pressure in investing at a certain time – this could be a scam. Some scammers might be offering mouth-watering bonuses when you invest right away. Do your background check before making any investment.
  • Don’t invest in virtual cryptocurrency if you don’t know how it works and ensure not to invest the money which you cannot lose.

WHAT ARE THE MOST COMMON CRYPTO SCAMS?

1
PHISHING CRYPTOCURRENCY SCAM
2
INITIAL COIN OFFERING SCAM (EXIT SCAM)
3
CRYPTOCURRENCY CLOUD MINING SCAM
4
IMPOSTER AND CELEBRITY ENDORSEMENT SCAM
PHISHING CRYPTOCURRENCY SCAM

This is done in a way that the scammers send out random emails to people offering mouth-watering investment returns. Oftentimes, this email takes the person to a website that has more info about fake investment opportunities.

Here, they request payment either in crypto or local currency and once this is achieved they block all means of communications and sometimes take down the website.

Also, they could request for private keys of investors. These keys are used to secure the cryptocurrency wallets – once they have the keys, they access the account and siphon all the money. Besides, crypto scams might also clone the websites you are registered to make them look like what you are used to. Always confirm the domain name and be sure it belongs to the website you are registered with.

However, it is advisable to only download crypto wallets from the official websites of the platform to which you belong.

INITIAL COIN OFFERING SCAM (EXIT SCAM)

This is when scammers create a new cryptocurrency coin that promises to offer huge returns on investment. They collect funds from unsuspecting investors and in the end, run away with the funds.

This type of scam is more common because it’s often difficult tracing the missing funds and the very easy listing requirements. Also, they are not only peculiar to new crypto coins – but they can also be used for those that have been around for a while. The initial coin offering scam is a form of Ponzi scheme where the money realized from new members is used as an abate to show how profitable the investment is.

CRYPTOCURRENCY CLOUD MINING SCAM

The mining process is the channel through which some cryptocurrencies have been designed. Before now, it involves the use of hardware and a lot of power consumption to mine cryptocurrency.

But with the advancement of technology, people can now mine without the use of hardware and power consumption. A good example is the pi network scam

However, crypto scammers are cashing in on this by creating dubious cloud mining software that is used in stealing funds from innocent miners.

IMPOSTER AND CELEBRITY ENDORSEMENT SCAM

At times, these scammers also pretend to be influential business moguls, celebrities, or crypto influencers to deceive unsuspecting investors. They create fake social media accounts that can be easily manipulated – here, they show people with fake returns on investments encouraging others to do the same.

So, as soon as they gather enough money they close the accounts and vanish with people’s money. Besides, the scammers could also vanish upon receiving the first payment leaving the investors devastated.

Besides, hackers might also target you via the discord scam by pretending to be your friends or using a friend’s compromised accounts to defraud you. Read more here

IS IT SAFE TO INVEST IN CRYPTOCURRENCY?

Before attempting to answer this question, there are some things that you should know;

Cryptocurrency is unstable and it comes with huge risks, to say the least – and this is just like other business investments. Cryptocurrency has several unknowns and in which many people are yet to understand its working principles – this in itself has made many people become victims of scams. Cryptocurrency has an unproven rate of returns on investment (ROI) Crypto is like gambling that occurs between two people and lacks regulations Therefore, investing in cryptocurrency is considered risky because the prices of cryptocurrencies are much more volatile than the prices of other assets like stocks. Besides, the crypto industry keeps evolving daily, so there might be new policies that may affect your portfolio. So, owing to the risks associated with cryptocurrency – it is advisable not to invest more money in crypto than you can afford to lose at any given time. You can also read more on cryptocurrency pros and cons before making any decision.

GOT SCAMMED INVESTING IN CRYPTOCURRENCY
– GET YOUR FUNDS BACK

For those that have been scammed, crypto scam recovery might be somewhat difficult – but Golden Recovery has helped a lot of clients like you recover their money from cryptocurrency scams. So we got you covered if you ever need to recover your money from a crypto scam. Here are some steps our solicitors shared that you can do to help you get your funds back;

Document Every Detail Of The Transactions

It is usually very important to note the details of the scam. For instance, text messages, emails, and other leads that could help to nab the suspects. Others that could also be of help include; your details; the names, emails, phone numbers, social media handles of the company, or the fraudsters.Besides, you will need the amount of money involved, your wallet, exchanges involved, and the time it happened. All this information will help to narrow down the search to easily nab the criminal.

Monitor Your Credit

Another important thing to do is to check your credit – this will help you know if there is any fake account opened for you. So, it’s advisable to add a fraud alert to your credit report – it will help prevent fraudsters from using your identity to create a credit account.

File Complaints With Relevant Government Agencies

Some of the government agencies for reporting crypto scams are; Federal Trade Commission (FTC), The Commodity Future Trading Commission (CFTC), The United States Securities and Exchange Commission, or the Internet Complaints Center(IC3).So, depending on your country of residence – several government agencies deal with crypto and other financial scams.

Contact Wallet Providers And Crypto Exchanges

So, in addition to reporting to relevant government agencies – it’s important to also report to wallet providers and wallet providers that are involved. Several of the cryptocurrency firms have created a dedicated help desk for reporting scams.

Watch Out For Fake Fund Recovery Scam

A recovery scam is another way through which scammers use to defraud victims again. Also, the cybercriminals will get in touch with the victims pretending to work for genuine money recovery firms.That is why you should go with Golden Recovery where we have a network of experts who have the skills and technical know-how of funds recovery.Even though it seems difficult – the recovery of your funds after a crypto scam is still achievable. At Golden Recovery, we have qualified associates that use the most up-to-date tactics and technology to tackle complicated scams and frauds such as a cryptocurrency scam. It’s important to report cryptocurrency scams whether you have to think it’s impossible to get your money or not. This is important so that officials can investigate the people or firms involved and stop them from continuing in these nefarious acts. Book a free consultation today to see how we can help you recover your money.Also, if you have noticed any breach in your data – you can get in touch with the Information Commissioner’s Office (ICO) and the US Securities and Exchange Commission (SEC). This body is in charge of investigating suspected data breaches and dealing with firms that are unable to protect your data.

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