New Zealand police are warning the public of potential crypto scams that promise good returns after a victim lost $320,000 in life savings.
Seek Advice Before Making Investments
In a report from the New Zealand Herald, the scam involved investments in cryptocurrencies such as Bitcoin. The scam is alleged to have offered good returns for very little investment.
According to Senior Sergeant Paul Reeves, as more money was put in the investment grew. However, this soon declined. In order to maintain the scam, the victim was contacted on several occasions to invest more money.
Members of the public should seek advice before making any online investments they are unsure of. Scammers are extremely persistent and can seem very credible, as they are highly versed in their trade.
In the opinion of Bronwyn Groot, manager fraud education at the Commission for Financial Capability, there are three types of scams. These are love and money, something for nothing, and betrayal of trust.
Due to the increasing interest seen in the crypto market, criminals are turning their attention to them to make a quick buck. As a result, offers that promise great returns are seeing unsuspecting victims falling for them.
A report from last month found that crypto scammers stole over $2.3 million in Q2 2018. A few of the scams include fake crypto giveaways and phishing websites. Of note, it showed that Ethereum was the most popular coin to use among scammers particularly with fake initial coin offerings (ICOs) and phishing attempts.
Crypto Scams on the Rise
Since the crypto market has been on the scene, criminals have embraced this new method of stealing money from others.
Yet, this rise can be noted from the end of 2017 during the increased rush of new investors to the market. Crypto scams, however, can be seen all around the world.
In April, Indian police arrested scam artists for alleging duping thousands of victims in Ponzi schemes.
Australia’s corporate regulator, the Australian Securities and Investment Commission (ASIC) confirmed, earlier this month, that it had clamped down on several ICOs. This was due to misleading or illegal statements.
Whereas, Belgium’s financial regulator has issued a second warning regarding fraudulent crypto trading platforms, citing rising complaints from customers.
It’s unlikely this is going to stop anytime soon. As long as criminals see a way of making money from crypto they will continue to target potential victims.
Have you been a victim of a crypto scam? Let us know in the comments below.
Images courtesy of ShutterStock