FinancialCentre Reports -Bitconnect Scam unveiled by the US authorities

London, UK, 4th Dec 2021, ZEXPRWIRE, The world has long been plagued by scams. But in the last few years, there seems to have been an explosion in cryptocurrency-related scams, with all sorts of dodgy companies promising the next Bitcoin. Scammers are using new tricks every day to steal people’s money. The authorities are doing their best in order to shut down these companies but it is a long process. In some cases, investors need to be careful as some of them are criminals themselves looking for easy targets. Once they have your money, it will be hard for you to get your money back.

FinancialCentre Broker Nick Johnson told us that the scams are no longer isolated to the internet, with criminals even taking over entire telephone exchanges in an attempt to trick people into giving them money. The UK’s Financial Conduct Authority has warned that “the public need to be alert to the risk of fraud, and if unsure whether a communication or approach is genuine then they should simply hang up”.

The following are some of the most common types of Bitcoin scams.

Bitcoin-flipping scams

A Bitcoin-flipping scam is where a fraudster promises to exchange your bitcoins for a much larger amount of money and sends you back smaller amounts due to transaction fees. The fraudster simply runs away with your cash and leaves you with no bitcoins.

Bitcoin ransom scams

A Bitcoin ransom scam is where somebody claims to have taken over your computer and demands payment in bitcoins to release its control back to you. These scammers will usually ask for a small amount, with the promise of giving you access once you pay. However, there is no guarantee that they will keep their promise, so never send any bitcoins to unknown parties.

Celeb scams

Celebs are often used in cryptocurrency scams due to the fact that they have a large following of fans (and some not-so-innocent admirers). A celebrity like Paris Hilton or Jamie Foxx is persuaded to tweet about a new cryptocurrency, and the scammers promote it almost immediately.

Another type of celeb scam is when criminals hack into an account and change the email address and contact details so that all future emails go directly to them. This allows them to spam their fans with phishing links in order to steal even more money.

Airline and holiday scams

These scams offer you a once-in-a-lifetime opportunity to claim free airline tickets or luxury holidays, but ask for your credit card details to pay the initial “booking/administration fee”. However, soon after you send your money their website will disappear and you’ll never hear from them again.

Crypto Scams in the US

Cryptocurrency scams are not limited to the UK. The US is also more susceptible, with some reports saying that Americans lost billions in crypto-related crimes last year. It’s important to remain vigilant and, if you’re unsure about a situation, do some research before handing over your hard-earned money.

Just recently, the US financial authorities have seized a total of 56 million US dollars from Bitconnect. Bitconnect scammed innocent people by telling them that investing with them will get them the highest returns because they have employed special bots that will make them earn money. However, investigation authorities have revealed that they were only using funds from new clients to pay the older ones.

More about the Ponzi Scheme

Mr Johnson says this is nothing but yet another case of the Ponzi Scheme where new clients or investors are used to pay off the older ones. In most cases, these schemes collapse after a short while and those who have been scammed lose their money. He advises people to be very careful when dealing with strangers online and if they must join any company, do their own research about it because it is better to be safe than sorry.

New agencies have revealed that this was the largest seizure in US history in reference to cryptocurrency. Although the company largely dealt in Bitcoin, they also had introduced their own tokens, BCC, which could be traded on the market. The US authorities have said that the state will reimburse their money in USD and not in Bitcoins.

The US authorities have stepped up their efforts in fighting cryptocurrency scams by shutting down fraudulent companies that are operating illegally. The Federal Trading Commission is also warning consumers about the different types of tricks used by scammers, such as using pump and dump schemes or creating fake celebrity endorsements.

The war on cryptocurrencies will be a long one, but authorities aren’t giving up. They are working to protect the investors and shut down any fraudulent activity. So, it’s important to be vigilant and do your research before investing in any company or coin.

With the Internet and the rise of social media, it has become easier than ever before to connect with others. As a result, criminals have also sought new ways to exploit innocent individuals. Cybercrime is one such way – and it’s more widespread than you may think!

Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.