2 minute read
Get-rich-quick crypto scams
Cybercrime is big business, thanks to technical advancement and interconnectivity creating more opportunities. This regular column will explore various aspects of cybercrime in an easy-to-understand manner to help everyone become more cyber safe.
COLUMN
Ever since the invention of Bitcoin there have been people keen to get rich from the latest cryptocurrency offerings. In pursuit of their goals they have developed a new type of investment scam that uses get-rich-quick schemes based on cryptocurrencies as bait. In one common cryptocurrency scam criminals advertise on social media using likenesses of celebrities, and claiming the celebrity’s endorsement of the investment company or crypto trader. To convince potential victims these criminals might create websites that appear to be genuine investment platforms or sites that refer to a new type of cryptocurrency.
Another type of get-rich-quick crypto scam is referred to as a ‘rug pull’ because the criminal pulls the rug from under investors leaving them with useless crypto tokens. To do this the criminal might invent a new type of cryptocurrency complete with fake whitepapers, spurious research and fake celebrity endorsement. They may artificially inflate the value of their currency by putting their own funds into it and, once the currency has gained other investors, appears sound and is increasing in value, the criminal cashes out by selling their crypto tokens leaving the currency valueless.
These crypto investment scams are portrayed as a new and exciting use of technology that offers a large return from a small investment with minimal effort. The criminals are cashing in on investors’ fear of missing out and the temptation to get rich quick, but the only people getting rich quick from these crypto scams are the criminals.
PROTECT YOURSELF FROM THESE SCAMS
• If you are interested in investing in cryptocurrency do your own research using trustworthy sources to determine if the currency is being audited by a reputable company. • An advertisement on social media or via unsolicited email for a cryptocurrency investment scheme or a new cryptocurrency using the image and endorsement of a celebrity is likely to be a scam, beware! • If an offer to invest in a new cryptocurrency appears to be too good to be true, it probably is, regardless of research claims, celebrity endorsement or seemingly authentic white papers. • Make sure the website you are visiting is legitimate and has been created by a genuine trader or investment expert. • Beware of URLs that have been created to resemble genuine addresses but are operated by criminals.
In Australia report cybercrime via https://www.cyber. gov.au/acsc/report. In another country, report it to your local police or through the relevant cybercrime reporting mechanism.
Fraud such as investment scams can also be reported in Australia to Scamwatch: https://www.scamwatch.gov.au/report-a-scam
Cybercrime is big business – learn from the past and stay safe.
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