Tag Archives: Guide

How to Identify a Crypto HYIP Scam

Crypto investment ‘red flags’

To help “crypto” investors avoid these types of scams, the SEC’s Office of Investor Education and Advocacy (OIEA) and Commodity Futures Trading Commision’s Office of Customer Education and Outreach (CFTC) warns investors to be careful about cryptocurrencies trading or investment websites and to watch for the following signs of “cryptos” frauds or scams:

  • ‘Guaranteed’ high rate of return (for example, 20-50%) returns
  • Unsolicited offers
  • Pressure to invest right now
  • Unlicensed sellers
  • Claims of little or no risks
  • Complicated, jargon-filled documentation
  • Frausters stops communicating with the investors
  • Advance fee fraud scam: Directing investors to pay additional costs to withdraw earnings
  • Sounds too good to be true

Watch out for these websites as they are known to scam investors:

1. wealthcurrency.com
2. boomcurrency.com
3. merrycurrency.com
4. online-bitcoin-generator.com
5. cryptoarbitrage.vip
6. btc-change.top
7. bitcoingold.live
8. bitcoin-bot.xyz
9. fx-hourly.com
10. goldcardano.com
11. sercofinance.com
12. tradersmarket.top
13. derivations.live

Be Proactive:

Learn about scams,
Report scams,
Visit Forums to learn from others.

Visit the following useful websites:

Beer Money Forum
Cybercrime Support Network
U.S. Securities and Exchange Commission
SEC Investors Resources 
Others

For more information:

Read OIEA’s Ask Questions publicationCheck the background of the firm, company, individual or websites offering investments opportunities on Investor.gov and by contacting your state securities regulator at NASAA 

Also check online at CFTC’s disciplinary history section and the SmartCheck “RED List” , which list entities identified as acting in a capacity that may require registration with the CFTC, but are not appropriately registered. Investors can also use the SEC Action Lookup – Individuals (SALI) feature of the US Securities and Exchange Commision (SEC), to find information about individuals who have had judgments or orders issued against them in any SEC court actions or administrative proceedings.

Report Investment Frauds:

If you have already invested and believe it may be a scam or a fraud and or you have been asked to pay additional fees to get profits from an investment, report it to the SEC or CFTC.

 

Reference:  

Alerts and Bulletins: Investors.gov