Social media and the internet are teeming with tricksters. Online tricksters are not new. They have been on the internet for as long as the internet has been buzzing. However, the onset of cryptocurrency has hatched a new breed of online scammers.
Cryptocurrency is a novel, red-hot topic. Many investors have raked in huge profits, whereas others have suffered devastating losses. Cryptocurrency is traded in crypto exchange forums, a largely unregulated field, although many credible crypto forums exist. There are no clear trade rules, and even to the enlightened, cryptocurrency trading has a swath of uncharted territories.
Crypto con artists create bogus investment sites on YouTube, Twitter, Instagram, and other social media sites to fool unsuspecting individuals.
They create fake live event videos to showcase their genius in crypto investments — and how to turn in eye-popping profits. Unknown to investors, these are only gimmicks to lure crypto enthusiasts into giving away their cash.
Some send WhatsApp texts that look like innocuous random messages. If you ask the sender to identify themselves, they claim that the text was sent to you by mistake — that it was meant for someone else.
While apologising for the “mistake,” the texter will befriend you, seeking to know your knowledge of cryptocurrency investments. They’ll tell you about a highly profitable cryptocurrency opportunity that a small elite team of investors uses to harvest huge returns.
Unregulated markets
If you swallow that bait and send money to their suggested wallet, that will be the end of it. You can’t withdraw your money and the “profits.” What looks like profits is simply an illusion generated by a gamed online system.
Every time you want to withdraw the money, the crooks will bring up requirements to fulfill before unlocking your funds. Issue-after-issue becomes the bait to squeeze out the last cent from you. When they realise they can’t get more from you, they kick you out of the system; you can’t log in anymore.
Cryptocurrency trades are uncertain by nature. They lack fundamentals that investors analyse when investing in stocks. As a result, their prices can drastically fluctuate. Crypto markets are also unregulated, making it easier for the bad boys and girls to manipulate prices and take advantage of innocent investors.
Always be wary of discreet trading forums that promise huge returns on your investments. Think again when they tell you to invite your friends and relatives into the scheme. They pile pressure on you to top up funds so that you cash in on this once-in-a-lifetime opportunity. These are likely ploys played by scammers.
Before investing, seek to know the management team of the trading company, their contacts, and how they trade. Don’t always rely on comments on social media, and don’t be easily swayed by a few positive reviews — take time to do your due diligence. BY DAILY NATION