The Scary Reality Of Cryptocurrency Scams

Scams inevitably follow when money is involved. The same applies to cryptocurrencies.

Wormhole, a cryptocurrency exchange platform, suffered a $320 million loss due to a cyberattack in February 2022. In addition to this attack, a study by the Federal Trade Commission claims that cryptocurrency fraudsters have taken more than $1 billion since 2021.

Digital currency is money kept in a digital wallet and may be converted into actual cash by the owner by transferring it to a bank account. Digital money is distinct from cryptocurrencies like bitcoin. Since it runs outside of financial institutions and uses blockchain for verification, it is more difficult to recoup from theft.

Scammers invent new ways of scamming to fool people, especially older people. They target them to make them believe in a secure retirement investment. They usually give back some profit initially, but sooner or later, they will vanish.

Today we will read the story of a retired man who spends all his retirement funds on a fake cryptocurrency scam website, thinking it will be a good source of income.

The man who fell victim to the ”cryptocurrency” scam warns others not to fall for the con. After his retirement, he was looking for an investment firm to invest his money to get a confirmed profitable source of future income.

He found a website that seems regulated and authorized to him. So he invested £250 in what he thought was a legitimate company. The initial investment gave a good return, and the company had its website and assigned a personal client manager, with all dealings done over the phone.

As we all look for a legitimate company, and when we see that they engaged an individual client manager to manage your account and he was continuously contacting you regarding the trading update, you will think that, okay, they should be authentic. This man also fell into this trap. Also, after investing some money, you will feel honored and excited to support more if you get a special invitation to a particular section of their company. This same thing happened with this man.

He says he was invited to join a company’s “retirement section,” where he had access to its trading platform and offered access to his investments. However, when I checked the cryptocurrency market websites, they had nothing to do with this company. However, you could see where the different types of cryptocurrency were trading, which confirmed what was happening on my account,” he said.

By now, he had invested a six-figure sum. He won’t tell exactly how much, but it was the whole of his funds plus a lump amount from his pension. In this stage, these scammers use a common trick. Remove the previous client manager and bring a new one who will offer you a new idea.

He mentioned that after some profitable days, they changed his previous manager due to COVID infection, and a new one came. And the new manager offered him a new proposal. Invest more for financial security and profit.

The business had requested additional funds from him as investment insurance, but they were not supposed to exchange them, and the company told him he could get them back at any time.

When he entered his account on February 15, he discovered they had traded the extra funds without his knowledge.

Only then did he realize that the entire scheme was a fraud. He added that I wanted to crawl into a hole when I learned that it was all gone in February.

My Home life has been shattered, he laments. I was doing everything independently, and my wife wasn’t aware of what was happening to me then.

He contacted everyone from the police to the Financial Conduct Authority to Trading Standards to report a scam. But no one can help him. Every door replied with the same answer; please wait; we will work on this and let you know.

One thing he did ideally was report the scam website on scam reporting sites like Report Scammed Bitcoin.

He also noticed that we have a list of cryptocurrency scammers such as investment blacklist, forex scammer list, cryptocurrency scammer list, unauthorized brokers by FCA, and HYIP blacklist, and surprisingly his company name is included on the website. So, he thought, why did I not do a check?

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After submitting the report, we contacted him and confirmed they could help him recover the money. For that, we directly suggested some service names and some legal connections to take help from them. So RSB did not work in his case now according to their policy but showed the proper ways and links to get appropriate help.

He finally gets his money back after a long time. Unfortunately, these kinds of scam platforms are organized and hard to track. But, with the help of proper guidance and connections, he gets his money back.

According to Damien Doherty, chief inspector of the Northern Ireland Trading Standards Service, scams like this is widespread.

“We are fully aware of how these con games work. They are quite cunning,” he remarked.

“As we have heard, they have account managers, complaint managers, and escalation mechanisms in this issue.”

Everything about it gives you the impression that you are working with a reliable business.

However, how much money was lost and the destruction it brought into this man’s life and his family is devastating.

In this situation, we’re trying to create awareness and let people know that this is a widespread scam and that anyone might fall for it. It’sIt’s an actual developing trend, the quantities of money are enormous, and they truly can wreck people’s lives. So to help people, we create several lists of crypto scammers and several blogs on how to be safe from these scams.