The world of crypto investments can seem very lucrative but fraudsters are using promises of riches to steal money.
Younger people, in particular, are being targeted with adverts on social media by crypto scammers. With so many well put together promotions it is easy to fall victim to fraudsters.
The first thing that we want to say is that, this is not your fault.
Sometimes crypto scammers will initially lure you in by giving you a return on your investment and encouraging you to spend even more money.
As well as social media, many victims are initially contacted by sophisticated WhatsApp groups which have a host of ‘actors’ to help make the investment opportunity seem more real.
However, you have been scammed we are here to help you recover your money. Our staff are very aware of how clever the fraudsters can be and are very aware that anyone can fall victim to fraud.
What are the key warning signs that it may be a crypto scam?
Here are some of the red flags to look out for around crypto scams.
1. Promises of guaranteed high returns with little to no risk: If a cryptocurrency investment opportunity sounds too good to be true, it probably is. Be wary of any scheme that promises you larges returns on your investment.
2. Lack of transparency: If there is very little information about the company or individual behind the cryptocurrency project then this should be a red flag. Also, be aware that it is easy to set up a website or social media page so you need independent verification of who you are dealing with.
3. Pressure to invest quickly: Scammers often use high-pressure sales tactics to get people to invest quickly without doing their due diligence. If the person who is asking you to invest is genuine then they should be happy to give you time to research the investment opportunity.
4. Lack of regulation: Cryptocurrency scams often operate in jurisdictions without any regulation which means that you don’t get the same protections as other investment opportunities.
5. Ponzi or pyramid schemes: Some cryptocurrency scams operate as Ponzi or pyramid schemes, where early investors are paid with the money paid in by new investors.
6. Offers from strangers: Be wary of unsolicited offers promoting a cryptocurrency investment opportunity. Scammers often use cold-calling, email spam, or social media messages to target potential victims. WhatsApp messages are a common way that people are brought into crypto scams.