The concept of cryptocurrency is attracting more and more fraudsters as scams are on the rise. Crypto fraud is rising at an alarming rate and financialists are being targetted now and then with new schemes. Cryptocurrency scammers are using fake celebrity endorsements and social media to trick victims into investing in fraudulent bitcoin projects, the Financial Conduct Authority has warned.
The FCA in Britain pointed out that it has received a number of reports about investment scams that promise to give huge returns. Investors who look to earn easy money often fall for these scams and become victims of the crypto fraud. Given that the cryptocurrency is not regulated, the consumers are unlikely to get their money back.
The warning comes in the same week that reports emerged of a 22-year-old Finnish man losing $35 million worth of bitcoin in a major cryptocurrency scam. The watchdog has warned that UK consumers are being targetted by swindlers who are tempting them by fake celebrity endorsements.
The watchdog further stated that fraudsters are using social media and images of celebrities to promote their crypto fraud. The online advertisements link to professional looking websites are used to lure investors. According to The Independent, firms operating the scams are usually based outside of the UK but will claim to have a UK presence, often a prestigious City of London address,” the FCA said.
A similar warning on cryptocurrency scams was issued by Action Fraud in April after it received 21 reports of fraudulent activity that had resulted in victims losing £34,000. With the growing concern of the online fraud, one has to take measures to curb the crypto fraud. Time and again watchdogs are issuing the warnings to the investors not to invest in the schemes as it might be a Trojan Horse programme.
Overall, Crypto Fraud has taken an ugly phase and the concept is garnering a lot of negative criticism.
The post Bitcoin Fraud on the Rise, Crypto Scammers Lure Victims appeared first on OWLT Market.
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