Between January and July 2019, innocent Australians have lost a record $14.76 million to Cryptocurrency related scams. (ACCC, 2019) Whist you may not think that you would ever fall victim to a scam, it's often this sense of confidence that scammers are preying upon.
Long gone are the days of relatively simple, non-sophisticated scams involving one individual and a mobile phone. These days, scams are run by multi-layered, professional businesses that have a dedicated team set up to figure out the best way to con you out of your money. With the use of convincing scripts, staff training programs and performance indicators, these companies are more equipped than ever to be as convincing and deceiving as possible.
Why are scammers using Crypto?
Due to the irreversible nature of paying with Cryptocurrency, scammers are able to take your money and leave you with little to no options in retrieving your money. Whilst this is unfortunate, the best way to ensure that you don't lose any money is to prevent it at the onset.
How can you generally spot a scam?
Here is a list of questions that you need to ask yourself:
- Have you been contacted about an investment opportunity that has promised fast and guaranteed returns? (Investment opportunities of this type almost always involve a catch, unfortunately, usually the catch is that there is no investment opportunity at all)
- Has a 'famous' person contacted you via a social media website such as Facebook, Instagram or Telegram? (These scammers often present themselves as an investing 'guru' that can line you up with the 'next big thing in Crypto'. Once again, this always results in your money being taken with little to no return)
- Has an individual or entity contacted you with instructions on how to retrieve previously scammed funds? (A common trick that scammers use is to prey upon individuals that have lost vast amounts of money via a scam. Due to the desperate nature of these individuals, they will often sent further funds in hopes that their initial investment will be returned)
The bottom line is if it sounds too good to be true, then it probably is.
If you have any concerns about whether you may be falling victim to a scam, please don't hesitate to contact us via live-chat.