Published by: Jennifer Morin, CoinSmart Compliance Officer
Lately, many scammers have been targeting CoinSmart users and cheating them out of their hard-earned money. In this article, we will be looking at the different methods scammers could be using to dupe you. Keep in mind that this article will be continually updated as we observe more scamming techniques.
List of Scammers
CoinSmart is not affiliated with any of the following companies or investment firms:
MaxTrade, StanfordFX.COM, XTrade, Finvesting, IGM Holdings, Promo-Leads, Crystalead, Hilltopbazaar, AdamsDarby, GoldingFX/FMarketX, 24xForex, CityInvestGP, Exobit, Followise, Pablo Trading, EuroCrytptoBank.io, Wellington Funds, Elite Blockchain Group, Investing Views, CENTOGX, InvestingNX, Fino Markets, London Blockchain Company, Interactive-Global, TredoFX, Ingoinvest, BiteLitGroup, Trade Vision Group, Brainlock, bicc-vip.cc, Litegap, Alphafxc, Man Capital Group, SFX Currency Trading, Wobit, CashFX, FX-Capitals https://www.fx-capitals.live/
For our European users, please report as soon as you get contacted by one of the following:
EuroCrytptoBank.io, LiteGap, bicc-vip.cc, Man Capital Group
Examples of Scammers
Scam #1: Managed solutions
In this situation, the scammer will offer an initial investment opportunity for a managed solution. They will likely ask you to pay around $250-$350 by credit card for a month, promising that you will get back the initial amount plus some interest. They will then coach you into setting up your portfolio through account/biometric verification, installing AnyDesk, and even providing bank account information. However, the scammer will soon go AWOL, and you will no longer be able to log into your “portfolio.” You could potentially also have a series of transactions done automatically from your bank account to your “portfolio” or will be coerced into investing funds right away due to the “hot market.”
Scam #2: Crypto Ads
Users can see random ads on websites, Youtube, Facebook, and various local newspapers that encourage users to sign up and earn optimal investments. After signing up with their phone number, name, and email address. The users get contacted by the scammers and get coached into setting up an account. Following that, the modus operandi is pretty similar to the one described above. Please also be aware of any affiliate marketing opportunities as those could also be a scam.
Scam 3: Celebrity influencer
The ad you see above is the perfect example of a fake celebrity influencer scam. Users see a post from Justin Trudeau, Elon Musk, Keanu Reeves about a crypto opportunity. They are then scammed into believing they will receive the same investment returns and that it is a safe and legitimate platform to use.
Scam #4: Targeted Calls
The user gets a phone call from a number with a foreign country code (like the UK), impersonating a blockchain company claiming to send funds back to people. The user then gets instructed to create an account with CoinSmart to show how they can send/receive money. The user is then requested to deposit money to their account, following which the scammer duly takes control and scams the user of their money.
Scam #5: Fake CoinSmart Employee Calls
Users get contacted by a scammer pretending to work for CoinSmart through social media. The scammer introduces themselves as a broker/advisor or trader and offers a managed solution or platform. The user is coached into setting up an account with CoinSmart and they end up providing the scammer all access and information to transact on their behalf
Scam #6: Withdrawal Scams
Some senior users are unaware of how account withdrawals work. So instead of withdrawing funds back to their bank accounts, they could be duped into sending them to other public wallet addresses.
Scam #7: Amazon Scam
The user gets a phone call from “Amazon” regarding a prime charge of $99.99 that needs to be returned. The user is then instructed to download Anydesk on their phone, where they then get refunded $9,999.99. The user is then told that they need to repay that, so they are instructed to set up a CoinSmart account to proceed with payment.
NOTE: Make sure that you keep returning to this blog since we will continually update our scam list.
What To Do If You Get Contacted By Scammers
If you do get contacted by scammers, please let us know immediately at email@example.com. As CoinSmart expands, more scammers will inevitably be targeting our users. Therefore, it is essential that CoinSmart’s compliance team can do everything in its power to protect our users. Education is the first step in this process, and your help will be greatly appreciated.