Crypto Fraud

Sometimes sayings are heard so often that they lose their meaning. After all, cliches only become so by being said a lot. At the same time, though, they get said that often because of how true they are. So, when you hear that if something sounds too good to be true, it probably is … well, that’s probably actually true.

This has occurred to me recently with seeing how cryptocurrency is being used to defraud people. And since even those who are experts in this area often have a difficult time being able to explain to the layperson just how crypto works, it should not be surprising that it is used as part of a scam.

I first saw this when John Oliver took on pig butchering scams during his weekly HBO show. Then I read another story with a headline highlighting nearly $2 billion in fraud, helping to show just how big this is.

What stands out to me about these situations is just how legitimate they seem. These are often being carried out in web and app platforms that look legitimate.  This is not the traditional scam idea of someone calling up threateningly and demanding payment. These play out slower, they come with victims making multiple payments over time to an investing platform, payments that they can even “see” are earning them good money in interest, when instead their money is already gone.

But just as that first cliché held meaning, others can too.

So, if you see any type of investment opportunity that you do not understand – investigate it first. Now granted, in such schemes this is not going to be a foolproof way to avoid it, and that is what makes it so frightening. Any amount of time spent doing so, however, without blindly trusting is time where you have a chance to turn the other way.

Unfortunately, the presence of scams overall is almost becoming a cliché itself and any mention of them feels like it might rapidly be becoming background noise. Pretty much everyone has had to deal with them at this point, and that makes it easier to just kind of accept their existence because you saw one and made it through. They always change, though, and they can always grow. Paying attention will only serve you well.

Warmly,

Josh Bousquet
Connect to Us ~ Facebook ~ Twitter