The rise in the value of cryptocurrencies especially Bitcoin has attracted a lot of bad people to this industry. Cryptocurrency scammers have used the ways like Fake ICOs, Cloud Mining Schemes, Multi-Level marketing to theft the investors but recently they have started using fake celebrity endorsements and other social media tricks to trick the investors into fake crypto and bitcoin projects.
Crypto Fraudsters Tempt Victims with Fake Endorsements
It is worth mentioning here that cryptocurrencies have been around for just 10 years and in most part of the world including Europe, US, UK the cryptocurrencies are no regulated. Financial Conduct Authority in recent press release warned the crypto investors not to invest in shady crypto ventures. The warning came after the reports of a 22-year-old Finnish investor lost $35 million USD worth of bitcoin to a cryptocurrency scam.
In the warning, FCA has warned that Crypto investors are being targeted by crypto scammers with fake crypto investment opportunities and for this purpose they are using social media platforms and images of well-known celebrities to attract them. FCA also added that the crypto scammers put the nice Ads on the social platform and these ads link to the professional-looking websites which offer the investors to invest in their ventures using the cryptocurrencies or traditional currencies.
The FCA also added that these scams often claim to have the UK Presence but they operate outsides from the jurisdiction of the UK. The authority also explained the behavior of these scams where they manipulate the software to distort the prices and return on investment which compels the investors into non-existent cryptocurrencies. Once the victims transfer the amount, these scammers close the account and refuse to transfer the funds back to them or ask them to invest more so that funds can be transferred. A similar warning was issued by the Action Fraud where they told that they received around 21 reports for fraudulent activity of similar nature where victims lost around £34,000.
If you are a crypto investor and looking to invest in a cryptocurrency venture then you can take some precautions to avoid the loss. The best way to check the authenticity of the venture is to Google it and put the “Scam” word with it. If there are any scams post about the particular venture you are looking to invest in, will show up and you can read reviews about it. If the venture is new then you can head to cryptocurrency forums on social media to take the advice of the expert investors.
Moreover, if you just want to invest in cryptocurrencies then make sure that you buy them from the popular cryptocurrency exchanges like Coinbase, Binance which enjoy a good reputation among the crypto community. Also, make sure to read the reviews of the particular crypto exchange which will help you know more about it.
If you are the victim of a crypto scam and want to get your investment back then you can consult and explore the possible legal options with Criminal Defense Lawyers which offer consultations to their clients.