Increase in Crypto Scams
Cryptocurrency scams are definitely on the rise. The FTC issued a press release this past month stating that since October, 2020 in the US alone “$80 million has been lost to cryptocurrency investment scams, an increase of more than ten-fold year-over-year”.
The FTC goes on to say that more than $2 million was reported lost to Elon Musk impersonator scams. According to their data, individuals between the ages of 20 and 49 were five times more likely to report losing money to cryptocurrency investment scams. During the six month period when this data was collected and analyzed “consumers in their 20s and 30s lost more money to investment scams than any other form of fraud. More than half of their investment scam losses were in cryptocurrency.”
Why are there so many crypto scams?
With the surge in popularity for crypto trading it’s not a surprise that more and more scammers are coming out of the woodworks. It should be made clear that the number of crypto scammers has reached proportions that one could have never dreamed of. Every day the Scam News Channel adds numerous new scams to the crypto scam list. This daily occurrence of new scams popping up should be an area of concern for every investor out there.
It’s well known that criminal involvement in the crypto market is rampant. However what’s more concerning is that on a sociological level a significant amount of business in the cryptocurrency market is being generated and owned by criminals.
Criminals have been using cryptocurrency to fund their illegal activities and to steer clear of the government for some time, however the fact that there is a funnel of new funds being sent to criminals on a 24/7 basis presents a moral dilemma that crypto exchanges have yet to address. This is money coming from our friends, our uncles and unfortunately much of the time from our grandparents.
Binary scammers turned crypto
The sad reality is that these crypto scammers were being bred and trained in the past 15 years. They were first called binary options traders and Forex traders. When binary options became banned in multiple countries, crypto became the go to scheme. Now that cryptocurrency has gained global popularity and enthusiasm, it’s very easy for these scammers to lure in their prey.
These same binary options traders that got away with scamming billions over the past 15 years are trained in the sales and marketing aspects of their schemes. Unfortunately it’s far too easy for them to open up and close shop within a minutes notice. This is in part why so many of these sites are constantly popping up.
How do I know if it’s a crypto scam?
Crypto is as risky of an investment as any. If someone tries to tell you about how much you can profit by using their platform, you can best assume it’s a scam. To be sure, check our updated crypto scam list, or send us a message here.
You can also check our article on how to identify a forex scam which spells out what to look out for in a trading scam of any type.
Looking for a regulated broker?
Fortrade is licensed and regulated by the FCA (UK), ASIC (AU) and the IIROC (Canada). This makes them reliable to trade with and you can know that you can withdraw your funds whenever you see fit.
OXBTC.COM WITH PANDAMINER.COM bith company are same, workung together, they practice a kind of “Selective scamming concept”. As they have so many clients (around 50’000) they do everything step with caution as tgey dont want autorities start hearing about it….
I can alllready tell them it isnt working as even if they steal crypto, delete all fingerprints, blockchain keep all transactions open and government can track a payment once they hear something or a team of idividual miners complaining company took all their investment away.
I warn everyone who has in my mind to invest into Cloud Mining in China-Shenzhen, where you can invest in bitcoin, filecoin & Ethereum contracts, I tought I spent no more than 1 K, well when I checked all my deposits I was over 5k, I use to log in everyday to see my investemenr growing, well around a month ago I ve found without any notice my account totally cleaned, wallet was empty, contracts canceled…..Electricity 1k prepaid gone…They told me a “Big” happened in their server, finally I never seen any coins back not either contracts, total loss 5k….And as I signed for 160 daS I must keep on mining but not possible to withdraw some mined bitcoin innmy personnal wallet, this means one of these days troubke will be back same aa first scam….
Mark I recently invested 2500 ,on a company called Pacifictradingfx .com/. I want to know if it’s legit I topped up the wallet and sent to the address wen they asked my trade is complete and they said the y want 15 percent commission before they can realise the funds ,but they can not take it out the money I earned ,it this a scam or legit company
Hi Mark,
Unfortunately PacifictradingFX is a scam.