How to identify and avoid scams on fraudulent cryptocurrency investment platforms?
In the growing world of cryptocurrency, scams on fraudulent investment platforms have become a common threat to investors, especially those without much experience. These deceptive platforms present themselves as legitimate investment opportunities, promising high cryptocurrency returns in very short periods of time. However, behind these false promises lies the danger of losing one’s savings.
The modus operandi of cryptocurrency scams
The scheme of these scams often follows a well-defined pattern. It all begins when the investor finds an offer that guarantees guaranteed profits, something uncommon in legitimate investments. For example, the platform may offer a 30% return in 60 days if €1,000 is invested, or even more if the amount is higher, such as €5,000 in 120 days. These promises are too good to be true, and they usually are.
Furthermore, these fraudulent offers often include images of celebrities such as Pablo Motos, Violeta Magriñán, or Bill Gates, who in reality have nothing to do with the platforms. Cryptocurrency scams use these well-known faces to generate trust in users, making them believe it is a safe investment.
The Fraudulent Investment Platform Trap
When the victim shows interest, they are invited to create an account on the platform. The next step is to make a deposit in cryptocurrencies, such as Bitcoin or Ethereum, as these fraudulent platforms do not accept traditional bank transfers. Scammers often help victims create accounts on well-known exchanges such as Binance, Kucoin, or Bybit, which gives them a false sense of security.
Once the deposit has been made, the victim can track the progress of their investment through manipulated graphs, which show fictitious growth of funds. These apparent high returns are only intended to encourage investors to continue investing more money.
The Problem When Trying to Withdraw Money
The real problem arises when the victim attempts to withdraw the invested money. At that point, the platform imposes an additional 30% payment on the total investment value, supposedly to cover taxes or release the funds. If the victim pays this percentage, the platform will request another 30% payment, continuing the cycle until the person realizes they have been the victim of a cryptocurrency scam.
At Block Traceability, we always recommend conducting thorough research before investing and following clear steps to protect yourself from potential fraud.
Key Tips to Avoid Being a Victim of Cryptocurrency Scams
Be wary of high guaranteed returns: No legitimate cryptocurrency investment can offer guaranteed returns in short periods of time. If an offer seems too good to be true, it most likely is.
Research the investment platform: Verify that the company is registered and regulated. Look for reviews from other users and consult reliable sources before making any type of investment.
Be wary of platforms that don’t allow immediate withdrawals: A lack of transparency in the withdrawal process can be a red flag. Legitimate cryptocurrency platforms allow hassle-free withdrawals.
Verify advertising sources: If you see a celebrity promoting an investment, verify that they are actually associated with the platform. It’s common for cryptocurrency scams to use the image of public figures without their consent.
Use cryptocurrency traceability tools: At Block Traceability, we help scam victims trace their lost funds using advanced forensic analysis tools. If you’ve already been a victim, we can generate a cryptocurrency forensic report, which is key to pursuing legal action.
What to do if you’ve already been a victim of a cryptocurrency scam?
If you think you’ve fallen for a cryptocurrency scam, don’t lose hope. At Block Traceability, we are experts in cryptocurrency traceability and collaborate with specialized law firms to help you recover your funds. By using cryptocurrency forensic reports, we provide the necessary evidence to identify the digital wallets involved in the scam. This type of reporting is essential to ensure that judges do not dismiss cases due to lack of evidence.
Block Traceability Advice: Stay informed and alert. Knowledge is your best ally in avoiding cryptocurrency investment scams. If you have any doubts about the legitimacy of a platform, contact us at Block Traceability for professional advice and to protect your investment.
