About Scams in General

Investment scams - Short history; Trends and Experience

History of Bitcoin

Bitcoin was officially created in 2009 but until 2016 the cryptocurrency was mainly used to purchase goods and services on the dark web. However, as the value began to rise, legitimate businesses started seeing an opportunity of the “21st-century currency”. This excitement led to a huge increase of bitcoin value from barely reaching $1000 / BTC in January 2017 to $2000 / BTC in May the same year. After this point, the snowball gained momentum until December 2017 when it reached an enormous margin to 19 thousand USD.

This short introduction explains the volatility of cryptocurrencies and the “quick profit” idea. Two years in – we can see the great rise of cryptocurrencies with “Dogecoin” to “Ethereum”. Facebook is trying to follow up on a trend; however, the regulators are trying to control the market of future currencies.

Nonetheless, this is where scammers are making huge profits of those who are still trying to materialize on a “quick profit” dream. At the time of writing this article (Nov. 2019), cryptocurrency mining websites are popping up so fast that there is a niche market just to sell website templates. You buy a website template for 10$ or if you want to look more legitimate, the investment of $80 can land you a website that looks more professional than local businesses’.

Therefore, we at Scamadviser are writing to you to share our experience with investment scams.

I (Aurelijus) work at Scamadviser for just two months, however, I already feel the impact of different scams online, however, none of them are as frequent as cryptocurrency investment scams. Scammers have so many ways to introduce their service to the audience: from personal messages on Instagram to email advertisement and writing blogs on how they have earned $2000 in just two weeks.

The unfortunate reality is that people do lose money in investment scams, usually the sum is higher than buying fake or non-existing goods. People are forced to pay to continue with their investment where they already spent money and time.

We have hundreds of testimonials similar to these:

« I was introduced to Zilla of Options360.biz on Instagram with the option of credible investment to earn a profit. Unfortunately, I was denied my withdrawal after 30 days of $708 BTC value investment. I was instructed to pay a withdrawal fee of $300 which brought me to realise that it was all scam. All attempt to withdraw failed till today. I lost it all. »

« High-interest rates and big winnings are promised but they just collect your money and don't payout anything.I was hooked in a Facebook group and there the scam started. Offering you interest rates of 30 percent per day and more. Was the reason why is invested 0.05 BTC which is the equivalent of 500 USD after two days there was displayed 1.51 BTC in my so called trading account and my contact person told me please withdraw some money. Withdrawal request send after the first two days, then you got informed that your account has grown to far and you need to top up your account to be able to withdraw the earned money. lol
So send me 800 USD then you can withdraw all your winnings. ;) »

After working for two years at Scamadviser, I’ve (Jimmy) seen many types of scams here and there that I didn’t imagine would exist in my worst nightmares. However, there are many ways of uncovering a scam and the scammer behind it before it is too late. An advice, don’t make any fast decision!

How to recognize an investment scam?

Check Scamadviser.com

Scamadviser’s automated trust score gives an analysis of a website based on more than 30 different criteria. It gathers publicly available data in one place to help you make a well-informed decision when it comes to committing with your money online.

Use your common sense

If an opportunity of making easy money looks too good to be true, usually it is not… Do not forget to think twice and double check things.

Check the small letters

Taking a tour at the terms & conditions of the website can enlighten you in some cases. Some scammers do not even take the time to fill this part of the website. However, if it is filled, but seems to include inconsistencies, do not trust this website.

Contact us

Scammers usually do not incorporate a valid contact address on their website, as this would lead to eventual prosecution lead by law enforcement. If no contact address or phone number is available, don’t do it.

Reviews / Social Media

Does the website link to any valid social media? Or does the website get many real-looking reviews coming from different users, written in different styles? Beware as it is also common practice for scammers to write fake reviews of their own on their own website, to increase credibility.

Faulty URLs

What does the URL of this website look like? Make a quick search engine search, and you might find the original website from which is this scam site inspired.

Poor quality grammar

Is the website completely readable and spotless of any misspelling? If not, you can be sure that the website you are visiting is not reliable.

Any other doubt?

Don’t do it!

A typical scheme used by scammers during investment scams is described below, by one of our users who unfortunately fell for it.

« When you open an account with xxxxxxxxxxxxxx.xx they will be pushing you to invest more claiming you will gain more and whatever amount you deposit and invest ,if you generate profit you can never withdraw your profit. The system will instead force you to reinvest the initial capital generated profit. And once you place a withdrawal request, they will block you from the Telegram group immediately and the your withdrawal will be updated in the website as succesfull and nothing will get to your wallet. Pure Scam, run away ! »

We hope this article helps you, in case of any doubt or question, do not hesitate to write to us!

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