Investors Face Risks from Fee-Related Scams

Cypriot authorities are urging the public to exercise caution after a 50-year-old man from Limassol lost $58,000 to a fraudulent cryptocurrency trading platform. This incident highlights the growing prevalence of manipulative tactics used in crypto market scams.

How the Scam Unfolded

Fake Platform with a Professional Appearance
The victim encountered a website in December that appeared to be a legitimate trading platform. It featured detailed charts, interactive dashboards, and tools for tracking profits. Lured by the professional design and promises of high returns, the man invested a total of $58,000 across multiple transactions.

Manipulated Data and Illusions of Profit
The scammers used a manipulated dashboard to display fake rising profits. This common tactic creates the illusion of successful investments, encouraging victims to continue depositing funds.

Demands for "Additional Fees"
When the man attempted to withdraw his supposed earnings, the scammers refused to release the funds, instead demanding additional fees to "unlock" the profits. This tactic, known as an advance fee scam, involves pressuring victims to pay more money under false pretenses, only to leave their funds inaccessible.

Recommendations from Authorities and Additional Warnings

Caution in Investing
The Cypriot Financial Crime Investigation Bureau advises against sharing sensitive financial and personal information and recommends investing only through licensed and reputable institutions. They also emphasize the importance of verifying the credibility of any advisor or platform.

Other Crypto Scam Incidents
Similar warnings have been issued by U.S. financial authorities. For instance, in June 2024, another investor lost $310,000 through a fake platform called Ethfinance. Scammers employed similar tactics, leveraging manipulated data to deceive victims.

More Sophisticated Scams
In July, another scam was uncovered where fraudsters offered fake loans. Victims were convinced their trading account profits would cover the loan repayments. However, the victims ended up repaying the loans from their own pockets while their supposed earnings remained locked on the platform.

Summary

This case from Cyprus underscores the risks of investing in cryptocurrencies through unverified platforms. Police and financial authorities warn against scammers who manipulate data and exploit investor trust. Exercising caution and thoroughly verifying investment opportunities are crucial for avoiding financial losses.

#CyberSecurity , #HackerAlert , #cyberattacks , #CryptoScamAlert , #CryptoNewss


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