The Royal Cayman Islands Police ("RCIPS") Financial Crime Investigation Unit said today that it is aware of a recent increase in scams involving purported cryptocurrency investments, and is providing information on some of these for public awareness.
The most common scams that have been reported include those involving romance/dating websites and direct investment schemes.
Types of Scams:
Romance/Dating websites - Scammers will use these websites to forge relationships and then introduce the victim to an “investment opportunity” in cryptocurrency.
Bogus/Imposter websites – Scammers will create phony websites with numerous fake testimonials and large amounts of crypto jargon. These websites will promise huge, guaranteed returns, as long as you keep investing.
"Celebrity" endorsements - Scammers will pose online as billionaires or other big names, and promise to multiply your investment in a virtual currency, but will instead keep the funds that you send. Messaging apps or chat rooms are also used to plant rumors that a famous business mogul is backing a certain cryptocurrency. Once they have lured investors to buy, and thus driven up the price, the scammers sell their stake and the currency plummets in value.
Virtual Ponzi schemes - Some cryptocurrency scammers will peddle nonexistent opportunities to invest in digital currencies and create the illusion of big returns by paying off old investors with new investors’ money.
Scammers Posing as Investment Managers/Traders – ...
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