Experts are warning that cybercriminals are increasingly employing new methods to commit fraud related to cryptocurrency investments. Simultaneously, they are still using old and known market strategies. Worryingly, they continuously find new victims. In addition to this, they unlawfully take on the images of well-known people and create fake digital currency exchanges to build trust. Especially, users of popular dating services must be cautious as they may fall victim to a so-called “pig butchering” scam. Promises of quick profits without risk should always raise suspicions. To protect financial assets, investment offers and the entities behind them must be thoroughly checked.
Public discourse increasingly mentions fraud associated with investing in cryptocurrencies. Fraudsters create, among other things, fake cryptocurrency projects or investment funds that are supposedly promoted by celebrities. As Anna Kwaśnik, an expert from NASK points on cyber security awareness, thanks to deepfake technology, doctored promotional materials are being created featuring politicians, celebrities, or athletes, promising quick and large profits, most often without risk. Another method used by cybercriminals are fake cryptocurrency exchanges, which closely resemble legitimate entities, having similar visual interfaces and domain names.
“In the cryptocurrency industry, scams are increasingly common, in which criminals impersonate well-known individuals in advertisements placed on social media, encouraging investments on fake platforms. After setting up an account and providing a phone number, the victim encounters aggressive phone calls from someone posing as a consultant. Using manipulation and social engineering techniques, they convince the investor to install remote access software, such as Anydesk or Teamviewer. This is how the fraudster gains access to the account and steals funds,” comments Janusz Zielinski, a cryptocurrency market expert from the ARI10 platform.
Meanwhile, Anna Kwaśnik notes that criminals also operate through popular dating services. This method is known as “pig butchering”. Scammers first establish a friendly or romantic relationship with the victim (a phase known as “fattening the pig”), and then encourage them to invest in the cryptocurrency market. When the investor’s financial resources are exhausted or when they start to suspect something, the criminal suddenly disappears (a phase known as “slaughtering”). The NASK expert also mentions Ponzi schemes. Both in the case of cryptocurrencies and other investments, it is illegal activity – new investors’ contributions are used to pay promised returns to old investors. Those at the end of the list may never receive a payout. An example of such an operation is the Bitconnect platform. In this case, returns promised from bitcoin investments were reportedly as high as 40% per month.
“From the signals we receive, including from victims, it appears that a popular method of fraud is extracting funds through software installation that allows remote computer monitoring. This is used to take control over the victim’s computer and obtain bank account details. Another method is persuading the victims to make transfers to supposedly unlock larger amounts, which allegedly belong to them,” says Michał Żuławiński from the Association of Individual Investors (SII).
Jakub Martenka from ARI10 stresses that some people receive information that they have to pick up cryptocurrencies for the value of a few thousand euros. The expert would like to believe that this method of fraud is no longer effective, but statistics show that there are always new victims. Therefore, if someone receives a similar message, they should exercise extreme caution. It is important to avoid sharing any personal or financial information. It is important to report suspicious situations to the correct authorities or directly to the platform that the alleged representatives claim to represent.
“There are also ‘rug pull’ scams. Simply put, these involve the creators of a cryptocurrency-related project suddenly pulling all the money out of the investment, leaving investors with worthless tokens. Such situations occur in projects based on blockchain technology, such as Ethereum, where transactions are managed by computer programs known as smart contracts,” adds the NASK expert.
Investing money always carries risk. According to Anna Kwaśnik, therefore, it is extremely important to thoroughly verify before transferring any funds. In Poland, one can do this on the website of the Polish Financial Supervision Authority, which maintains a register of legally operating entities. When looking to invest in cryptocurrencies, it is worth consulting a ranking of recommended exchanges and choosing one that enjoys the greatest trust. However, this still does not, of course, guarantee complete safety.
“It is necessary to thoroughly analyse the investment offer and be vigilant about promises of quick and large profits with minimal risk. Authenticity of social media and video materials should be checked. It is worth making sure that they are real, and not generated by artificial intelligence or copied from other profiles or deceptively resembling the original company profile. It also involves verification of company registration in appropriate registers and identification numbers. Attention should also be paid to communication. Responses should come from real people, not bots. Local companies should provide customer support in Polish and have no significant stylistic errors,” advises Izabela Mazur, a cryptocurrency market expert from ARI10.
Meanwhile, Michał Żuławiński lists typical situations in which a potential victim of financial crime should raise a red flag. These include promises of profit without risk, persistent persuasion to invest, harassment by phone, phishing of electronic banking or credit card data, or asking to install any application on the computer. As the SII expert assures, when in doubt, it is always better to give up an allegedly exceptional offer. Following the principle that it’s better to lose an opportunity than money. Moreover, the police should be informed about the case. The more signals they receive, the greater the chance of catching the criminals.
“The cryptocurrency market is international and anyone investing in digital currency can stumble upon fraudsters. Among the victims there are also Poles. This is pointed out in messages released by the national police headquarters, the Central Office for Combating Cybercrime and other institutions fighting investment scams. With manipulation and nefarious methods, fictitious scenarios and promises of big profit, fraudsters get potential investors to part with their money,” warns the NASK expert.
The victim may initially see alleged profit on their account when starting to invest, notes Adam Radomski, a cryptocurrency market expert. This is meant to encourage further investments. As the expert adds, when trying to withdraw funds, the first difficulties arise. Fraudsters shift blame to technical problems. Alternatively, they announce that additional payment is required to unlock profits. Victims often take on various liabilities in the form of loans or use their savings to unlock “earned” funds. In reality, the payout never comes, the fraudsters go silent and disappear with the money.
“In Eastern Europe, Asia, and Africa, call centers are being set up en masse to defraud people. From market observations and signals, it seems we are most at risk when a person with an eastern accent speaking Polish calls us to offer investments. I myself have received such phone calls and they have always been attempts to scam money,” concludes Jakub Martenka.
Source: https://managerplus.pl/oszusci-grasuja-na-portalach-randkowych-eksperci-ostrzegaja-klientom-grozi-tzw-swiniobicie-62130
