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While many people invest genuinely in a safe and secure manner in the crypto market, unfortunately those who lack the technological knowledge combined with a high-risk appetite, can often find themselves the victim of a scam.
What you need to know
Crypto is a private investment and it’s an area which criminals are infiltrating, posing as genuine crypto experts.
These individuals are skilled at convincing people they are the real deal. They rely on a lack of knowledge and interest in making a quick dollar. They will often masquerade as investment managers, financial advisors or crypto trading experts. However, beneath this mask is a criminal.
Tactics they use include:
Showing you the (fabricated) returns of their other clients.
Use highly realistic fake trading software and crypto wallets.
Coaching you on what to say to your bank when transferring money.
Patience and willingness to keep victims engaged for months even years, may even send back some ‘returns’ to keep the carrot dangling.
They are clever, well-spoken and believable.
By using these tactics, they are able to convince their victims that their crypto is safe, in their possession and making returns. This keeps victims engaged and willing to investment more funds into the scam.
The reality is that the cryptocurrency is, and has been, in the scammer’s wallet and control all along. The accounts, software and wallets are all a front to disguise this fact.
When the investor makes moves withdraw the funds, they start to run into walls.
The criminals will ask for more money, stating that tax needs to be paid to release the crypto – just another attempt by the scammer to get even more money out of their victim.
If you are considering investing in crypto currency it is recommended you seek authorised financial advice within Australia.
Let’s work together and stop these scams
If you think you have been targeted or lost money as a result of a scam or fraud, report it now. Let’s keep working together to be vigilant.
Do not answer unknown calls or respond to text and email messages.
The information in this communication is general in nature and is intended to raise awareness about common scam tactics and preventative measures. While the information may assist you in mitigating your risk and exposure to scams and fraud, this is not guaranteed in any way. Examples are illustrative only and are subject to the assumptions and qualifications disclosed. Whilst care has been taken in preparing the content, no liability is accepted for any errors or omissions in this communication, and/or losses or liabilities arising from any reliance on this communication.