According to Foresight News, the U.S. Securities and Exchange Commission (SEC) Investor Education and Advocacy Office issued an investor warning, revealing five ways fraudsters may lure victims into scams involving crypto asset securities. First, fraudsters may establish contact with victims through social media platforms or text messages and then gain trust.
Second, fraudsters may exploit emerging technologies such as AI to create hype. Third, fraudsters may impersonate or hack into trusted sources. Fourth, fraudsters may drive up the price of crypto assets and then sell them for a profit, including so-called meme coins. Finally, scammers may ask for additional fees and falsely claim that they can allow users to withdraw funds from their accounts or recover losses.
