The Better Business Bureau Spot-Lights Cryptocurrency ScamsScroll Down
The Better Business Bureau is warning Americans about cryptocurrency investment scams. Typically, scams operate by promising investors a high rate of return, which is believable to people as they read about early Bitcoin investors who made millions. The BBB says three out of 10 fraudulent transactions involving U.S. and Canadian individuals and organizations occurred on C2CX, a cryptocurrency exchange.
People fall prey to scams such as fake crypto exchanges and fake up-and-coming cryptocurrencies. One founder of fake digital coin. My Big Coin, took $6 million from investors who thought the coin was backed by gold. There was also supposed to be a VISA/Mastercard backed by MBC that stores accepting MBC would accept. Florida authorities charged founder Randall Crater of New York, along with others,in the fraud. My Big Coin appeared legitimate. with hundreds of thousands of Twitter followers and a Crunchbase listing.
Some crypto scam operators lure victims in by pretending to be associated with legitimate entities. Fake crypto exchange, BitKRX, claimed to be an offshoot of KRX, a legitimate South Korean stock and futures exchange. A large number of South Korean investors are being swindled by unregulated cryptocurrency exchanges which claim nonexistent associations with legitimate financial institutions.
There are also crypto scams involving old fashioned malware. A person with a crypto wallet may click on a link promising free cryptocurrency mining software. The link can contain malware designed to empty a person's wallet. Ponzi scams also operate in the cryptocurrency realm. MiningMax brought in $200 million before new investors discovered their money was going to pay initial investors.
While cryptocurrency scams are growing, the BBB warns that online employment offers and online shopping sites are far more prevalent. Remember, Bitcoin and other cryptocurrencies are already a risky investment without getting scammers involved. Research any crypto firm very carefully before investing any money.