🌎 Cyprus Warns of Cryptocurrency Scams

Cyprus Warns Investors of Cryptocurrency Scams After Local Loses $58,000

Cyprus authorities are cautioning investors to be vigilant after a local resident fell victim to a crypto scam that promised lucrative returns. The scam resulted in the loss of $58,000.

The Limassol Criminal Investigation Department is currently investigating a fake cryptocurrency trading platform that scammed a 50-year-old man. The victim initially came across the phony website in December, which appeared legitimate and offered investment opportunities resembling a regular cryptocurrency trading site.

Scammers’ Tactics

The victim was convinced by the professional appearance of the platform and the promise of high returns, investing a total of $58,000 across multiple transactions. A manipulated dashboard, commonly used by scammers to trick victims into believing their investments are growing, kept showing his profits going up, making it all seem real.

However, when the victim tried to cash in these profits, the scammers refused to release the funds, claiming additional fees or deposits were required to “unlock” his earnings. This tactic, known as advance fee fraud, is commonly used in crypto scams where victims are pressured to pay extra money under false pretenses, only to find their funds remain inaccessible.

Investor Warnings

The Financial Crime Investigation Bureau advised against sharing sensitive financial and personal details and urged investors to “only invest with recognized, licensed financial institutions.” The bureau also emphasized the importance of checking the credibility of any advisor or platform they’re dealing with.

Similar warnings were issued by the Washington State Department of Financial Institutions, highlighting an incident in June where another victim of advance fee fraud lost $310,000 worth of crypto to a fake digital asset trading platform. The agency also issued warnings against two other platforms that ran similar schemes.