Let the current huge returns from the cryptocurrency market not fool you. Indeed, no one denies that online trading is a lucrative investment. However, beware of the fraud involving cryptocurrencies, “get-rich-quick” scams. Each year, cryptocurrency investors lose their millions to online criminals. You might have heard of people who lost reasonable amounts of cash after a crypto scam.
Led by BPFI (Banking and Payments Federation Ireland), FraudSMART, a crime awareness initiative, warned crypto investors against the rising scams in the market, where some individuals are losing up to $50,000. It is such a painful experience not worth anyone’s investments.
In most scenarios, scammers use pop-up adverts or cold calls to lure traders into their fake deals.
Brian Hayes, a BPFI CEO, declared that the virtual industry has many legit trading platforms. However, they are unable to fight scammers not to copy their services. True enough, most crypto scams involve fraudsters impersonating crypto trading firms.
Keep in mind that cryptocurrency is attracting the attention of many individuals due to the current hype surrounding volatile assets. Most individuals are joining to enjoy the returns with this sector. On the other hand, legit investment firms have invested in ads to attract their target clients.
Unfortunately, the buzz has attracted criminals too. Scam artists are now creating firms offering counterfeit ‘get-rich-quick’ investment opportunities to crypto enthusiasts. They will promise you enormous returns with less effort. Be careful when you encounter crypto deals guaranteeing your high returns with less investment. Not unless the crypto deal has its share of risks.
BPFI suggested that all traders watch the following red flags:
- Cold calls – be careful whenever you receive an unexpected email, social media text, or telephone call notifying you about an investment opportunity.
- A cryptocurrency dealer pressuring you to make your decision without any delay. A legitimate investment opportunity will give you time to rethink your saving decisions.
- Promises quick and high returns without any risks.
Hayes told customers to be vigilant and invest only after confirming that they are trading with a legit platform.
Criminals play with your psychology, throwing you different offers. Get over the emotions of greed when trading to avoid falling a scam victim.
Beware of ‘get-rich-faster’ frauds by scam artists.