“They guaranteed doubling my money, now I must pay more.”
Cryptocurrency trading scams attract you with the promise of unrealistically high returns or guaranteed returns within a short period of time. These offers are usually available for a limited time period only - creating a sense of urgency that makes the victim believe that they will miss out on an incredible opportunity.
Scammers generally contact you on social media claiming to be from the US or Europe, flaunting a lifestyle of luxury on their profiles to appear successful (think Tinder Swindler but with crypto). They also might share screenshots of other “happy customers” thanking them for profits or amounts they made.
They might pose as a Luno representative offering to create an account for you on a trading platform, sharing screenshots of your profits, leading you to believe that it is legitimate because it is associated with Luno.
Once the account has been created and the first deposit is received, they’ll immediately require another deposit and will then start requesting that you pay various fees in order for the funds to be released.
Note
Does this cryptocurrency trading opportunity sound too good to be true? Consider why a “trader” that you do not know, would randomly offer you a great investment via social media. On the other hand, if you do decide to invest - why would you be required to pay a fee in order for your profits to be released?
These fees are payable in cryptocurrency for things like:
-
Consultation fees
-
Registration and verification fees
-
Tax fees
-
Profit release fees
-
Cost of transfer (COT) fees
-
Package activation fees
-
Management fees
-
Commission
When you refuse to pay, they will block you on social media and disappear, leaving you without recourse or funds.
Tip
Here’s what to look out for:
-
The false promise of guaranteed profits (if it sounds too good to be true, it probably is).
-
A broker that operates in a country with a poor regulatory framework.
-
Poor online reviews.
-
Crypto bronze, silver or gold “packages” offered trading platforms pretending to represent Luno.
-
Time pressure: “If you don’t pay this now you will lose all your profits.”
Visit our security page to find more articles on how to keep your money safe from scams.