The rise in crypto scams worldwide has resulted in global organization FMA releasing new alert. According to official announcement on December 16th, the Financial Markets Authority (FMA) has warned of a growing cryptocurrency investment scam that preys on social media users via messaging apps and YouTube channels.
Scam Alert on YouTube Threatens Crypto Security
The scammers work by setting up YouTube channels that provide guidance on cryptocurrency trading and enticing users into private Telegram or WhatsApp groups with the promise of prizes and investment advice.
Once victims are tricked, scammers pretend to be experts in investments and lead them to fake trading platforms that imitate real cryptocurrency exchanges.
Scammers initially promote modest investments to establish credibility as part of a planned scheme. To encourage bigger investments, victims are then shown fake profits. Although no money is ever released, users who try to withdraw it are greeted with requests for additional fees.
Over 40 dubious trading platforms have been flagged by the FMA, including bricsinvestlimited.com, phoenix-trades.com, and bi-investments.com. Scammers run these websites, which are made to look authentic.
Crypto Scams See Rise on Social Media
Social media platforms have seen huge a rise in scams worldwide. As UnoCrypto reported earlier, the X platform has seen a sharp increase in cryptocurrency-related impersonation accounts , with over 300 new accounts being added every day, according to Scam Sniffer’s monitoring.
Compared to the November average of 160 such accounts per day, this is a notable increase.
Unwary users on the platform are seriously at risk due to the scam accounts’ quick spread.
Crypto Scams See Huge Capital Loss
Because of the illegal cryptocurrency trade, there is now more illicit money flowing around the world. Although countries have been working together to closely monitor these activities, frauds, illicit activity, and cryptocurrency scams, the number of scams and hacks has been rising.
This has resulted in a huge loss of money globally, making many be away from crypto investments.
The widespread occurrence of cryptocurrency scams on the social media platforms highlights the urgent need for improved user awareness and education.
As the cryptocurrency ecosystem keeps expanding and gaining popularity, it is critical that platform users become adept at spotting possible fraudulent activity and take preventative measures to safeguard themselves.
Platforms like X, YouTube etc can better protect their communities from the devastating effects of these scams by equipping users with the knowledge and tools they need and encouraging a culture of vigilance.