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How to avoid cryptocurrency scams?

nvesting in cryptocurrencies: 5 private detective tips for amateur investors!

Bitcoin, Ethereum, Ripple, who has never heard of these virtual currencies more commonly called “cryptocurrencies”?

In a few years, the price of these cryptocurrencies has exploded. There are currently more than 6000 cryptocurrencies in the world!

Bitcoin, the most famous, exceeded $67,000 in November 2021 when a year earlier its value was only $15,000.

In May 2011, Bitcoin was trading at around $3.50. Almost 10 years later, in May 2021, Bitcoin was then trading at $48,640, around 14,000 times more than its starting stake!

Beware of scams, especially on new projects!

very day new “currencies” appear. These sudden appearances must attract increased vigilance. Some malicious people take advantage of this trend to defraud new investors. As the cryptocurrency market is so young and very little regulated, scams and fraud are exploding. Between 2020 and 2021 cryptocurrency losses due to theft or fraud have increased by more than 600%!

At the beginning of February 2022, the Wormhole platform had more than $320 million worth of cryptocurrencies hacked.

The “Squid Game” cryptocurrency is one of the latest examples of a dubious small cryptocurrency scam. The creators of this currency have set up a website from scratch, highlighting an imaginary partnership with Netflix.

In a few days, this cryptocurrency exploded to nearly $2,800 and then fell back to 0. Indeed, the creators flew with the money and thus caused its value to plummet.

Squid Game sur Netflix

STAY VIGILANT: Before investing in cryptocurrency, you should know that there is no guarantee of return. Caution is therefore required before embarking on this new universe.
Here are five non-exhaustive private investigator tips for taking precautions when investing in this area and avoiding the scam:

1 - Validate certain essential points

The digital cryptocurrency companies you bet on must validate the following points:

  • They must be based on Blockchain technology.
  • They must indicate their liquidity in digital currencies.
  • They must specify their rules in terms of ICO (initial coin offering)

2 - Recognize a fake website

Many fraudulent sites exist. It is imperative to check the URL address of the site you are visiting. The latter must include a padlock icon or the mention “https”. The site may look identical but the user risks being redirected to another fraudulent payment platform. For example, hackers have slightly modified the URL by simply substituting the number 0 for the letter O. You will therefore not be directed to the desired platform.

Also beware of false comments / opinions on forums to make the scam credible.

3 - Email scams / Phishing

The modus operandi of scammers is to use the logo and visual identity of the brand. They send an email that appears to be from a legitimate cryptocurrency company. It is essential to ensure that the email address is linked to the company. Syntax and spelling errors, or links inserted in the body of the email can also alert you.

4 - Phone scams

It happens that some scammers contact their future victims by phone after the latter have left their contact details on cryptocurrency investment sites. Scammers try to build trust with their victims. They very often show great friendliness and a lot of kindness and then promise very attractive returns. Once the fraud is carried out, these scammers are unreachable and disappear with the money deposited by the victim.

It is therefore essential to be extremely vigilant and to check all the details of the service provider before embarking on this type of investment.

5 - Check with the Autorité des Marchés Financiers

If you use an intermediary to buy or sell cryptocurrencies and/or active crypto custody services, you must check that the latter is registered with the AMF: Autorité des Marchés Financiers. Without this registration, it cannot offer these services on French territory. It is therefore necessary to favor service providers registered and approved by the AMF.

Finally, if you wish, before making investments, to find out about an unknown cryptocurrency, do not hesitate to call on the service of our private detective agency. We can help you establish usage checks using a clear and appropriate methodology. Even if a lot of information is already accessible at first sight on the internet, a deepening can sometimes be necessary especially when the sums involved are substantial.

You can consult our detective rates or contact us directly using our form.

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