The UK Financial Conduct Authority (FCA) recently issued well-filtered recommendations to the public especially the investors not to participate in cryptocurrency investments related to Covid19 through an official website.
“Watch out for scams related to Covid19,” the FCA notes.
It further said that susceptible participants stand more chances of being beleaguered.
“Beware of investments that appear to be too good to be true,” it adds. “If you decide to invest in something offering a high return or in a cryptocurrency, you should be prepared to lose all your money.”
As the Corona19 epidemic continues to spread around the world, many criminals commit fraud against the underprivileged by borrowing names such as insurance, pensions and high-yielding investments, and the cryptocurrency should be careful on such projects in order not to fall victims and lose their hard-worked-for money or stashes.
Since February 2020, the National Fraud Intelligence Bureau (NFIB) has tracked around 21 scams involving Covid19, some of which have been recorded as Bitcoin (BTC) extortions. Of these, losses from non-encryption fraud totaled to approximately 800,000 pounds ($983,700 United States Dollars).
Accordingly, the FCA advises digital currency venture capitalists to pay much attention to the investment info presented in social media ads and emails, and not to excessively disclose personal data. In addition, the British financial newspaper 'FINTECH FUTURES' said that other financial watchdogs including the U.S. Securities and Exchange Commission (U.S.SEC), an agency responsible for monitoring monetary assets including Bitcoin and other cryptocurrencies, has issued similar investment warnings before – in early last month.
“When investing in any firm, including firms that claim to focus on Covida19-related products and services,” it wrote at the time, “carefully research the investment and keep in mind that investment scammers often exploit the latest crisis to line their own pockets.”
Actually, we talk about people making massive losses through investing in fake cryptocurrency projects, we mean it. We have seen investors lose billions and billions of in onecoin project, fake ICO activities, pyramid, ponzi, as well as pump-and-pump projects.