With Bitcoin’s rising popularity it was just a matter of time before dubious-natured crypto scams in the guise of get-rich-quick scams hit the market. In fact, the FCA recently made a public statement about how fancy cars and Rolex watches are used to portray the type of carefree lifestyle which can only be achieved through Bitcoin, the new virtual currency which is gaining everyone’s attention.
How Do Crypto Scams Work?
In essence, various online promoters latch on to certain offers which they believe will attract the most visitors and start endorsing them via reviews, popup ads, or email marketing. Hyped up and exaggerated claims of easy money, inflated bank accounts, and fake testimonials are just some of the unsavory sales tactics employed by crafty online marketers in order to bait unsuspecting victims.
Why Am I Being Targeted?
Crypto scams can also take the form of automated trading systems. Innocent or uninformed would-be traders and opportunity-seekers are always looking to cash in on a legit crypto offer, so they sign up for offers. Eventually victims start receiving spam or text messages which are sent out to their smartphones or mobile devices asking them to join a certain program.
The Sales Pitch
Hello! You have been selected to join our Beta Testing Group! Here’s is your chance to get in on the crypto revolutions and started generating passive income to the tune of $900 an hour. This is the classic sales pitch, and it is usually accompanied with inflated figures and forged testimonials.
How Much Money Are We Talking About?
Recent data shows that financial scam and fraudulent trading software such as Crypto Robot 365 are responsible for defrauding unsuspecting victims out of £50 Million each month! And that’s just in the UK, so scammers and crooks have upped their game and understand exactly who to target and how to get money out of them. This grim picture is not getting any brighter as we know more and more people are entering the crypto environment without any prior knowledge and this makes them easy prey and more susceptible to fraudsters looking to fleece their wallets.
How Is The Money Distributed?
Usually there is a revenue or profit share scheme where the promoters take a certain cut of the money which is invested by the customers they referred. This is a very common scheme and usually involved new product launches which create a buzz and are very marketable.
Conclusions and Summary
In order to avoid get-rich-quick crypto scams it would be wise to educate yourself and do your due diligence. Catching up on reviews and asking your friends or relatives opinion will usually save you a pretty penny. As always, whenever considering joining a new program a grain of salt and a healthy dose of skepticism will go a long way and help you in making the right decision.