It seems like crypto coins are the next big thing in online trading, and the massive number of new websites specializing in cryptocurrency trading on the internet is proof of that. However, among the countless websites out there today, there are also quite a few owned by criminals, wishing to take your money and disappear. And you’d be surprised how easy it is for them.
2020 saw a rise in the popularity of cryptocurrency as a trading venue. It’s no surprise, though, since COVID-19 had traders shying away from almost every other possible venue. Crypto coins are different since they are virtual and not owned by any country. This naturally means that they are not related to any economy, and therefore financial crises do not affect them as much as they would a fiat currency.
The numbers, therefore, speak for themselves. In the midst of economic uncertainties caused by the virus, Bitcoin’s value for example reached a new all-time high. While we’re talking about the most popular crypto currency today by far, other known and trusted coins such as Ethereum, Monero, Litecoin and Dash were also on the rise.
Cryptocurrency scams: why now?
Now that we understand how cryptocurrencies have become so popular for investments, let’s try to figure out what makes them so vulnerable to scams. One obvious reason is in their name – they are encrypted money. This basically means that their value can be ‘stashed away’ in a secure, hard to reach and untraceable digital wallet. All of this sounds ideal for stolen money, and a hassle for people trying to track it down.
Another reason is that, well, these websites are dishonest. They have tried their luck with all kinds of different trading venues in the past – some more successfully than others. Remember when the binary option scam was so common, just a few years ago? This is the same phenomenon, only based on the current trend of cryptocurrency exchange.
Finally, a third reason is how unexpected the crypto coin market is. As opposed to other markets, which are easily analyzed by professionals and every rise or fall comes hand in hand with a logical explanation, it seems like people in the financial industry haven’t really fully understood yet what drives the rate of the cryptos up and down. This means that it’s easier for phony brokers to make unrealistic predictions and promises – with no one to call them for it.
How it works
Naturally, these crooks have several modus operandi when it comes to stealing your money. Generally speaking, however, the system works in the same manner. These companies search for people with a low or medium income and with a desire to make some more money. Through advertising on social media, the victim is lured to leave contact details. That’s when an endless stream of phone calls begins, which probably won’t stop until the victim deposits money in an account on the website and starts buying crypto coins – Bitcoin, for example.
At first, usually the novice trader profits from the broker’s advice. Only later on do they start losing money and feeling the need to invest some more in order to regain it – the best example of prospect theory there is. Before the victim realizes that this is a Bitcoin fraud, they are down thousands of dollars. The brokers, who have been giving them malicious advice all along, disappear at that stage.
What if the investor does not listen to the broker’s bad advice, and actually avoids big losses? Well, at that point the broker slowly disappears – and is nowhere to be found when the victim wants to start withdrawing profits from the account. No one answers the phone, and you can only dream of someone replying to emails.
It doesn’t have to be that way
This can all naturally be avoided. Trading in general is very risky, but if you want to give it a try, we’d recommend starting out with small sums. Also, choose the website you trade with very carefully. Make sure it is licensed and regulated by an authoritative body – these websites usually display their license proudly and if you don’t see it, take your money somewhere else.
However, even if you’re super careful, sometimes these crooks can still outsmart you. If your money was stolen, know that you’re not alone and that all is not lost. Report your case to authorities, even if you don’t believe they can help. An official document from your national police body can assist you later in court.
Next; turn to us and our services. We have a track record of nearly $10M recovered from bogus trading websites to our clients. Just fill out the form on our site and we will get back to you, in order to schedule a free case review. The sooner you act, the more chances we have of tracing your money and returning it to you. These crooks are professional, so you need a hard-working team at your side, dedicated to getting justice served.
