Crypto and Forex Ponzi scheme on the rise amid COVID-19
In conversation, Adv P M Mishra talks about various scams that have hit the market since the past few years
Internet usage has seen a surge in Covid19 era, and few scammers would love to take advantage of this situation. Thousands of Forex trading related Ponzi schemes, Cryptocurrency related Ponzi schemes have already been unveiled globally, more specifically in India.
As Indian investors are habituated to forget things quickly, same old scammers are in line to loot common Indians in the name of Forex traders, Crude oil company investment plan, ROI based MLM scheme & more importantly Cryptocurrency, Bitcoin-related fraud.
Without the mandatory Cryptocurrency regulation as such genuine Crypto exchanges are in an uncomfortable situation but these scammers keep on looting Investors by promising huge return.
Social Media Deception And Fancy Jargons
Some scammers go for straight-up deception. The founders of scam cryptocurrency One Coin defrauded investors of $3.8 billion by convincing people their non-existent cryptocurrency was real, as per a news article.
Other scams are based on impressing potential victims with jargon or claims of specialized knowledge. The Global Trading scammers claimed they took advantage of price differences on various cryptocurrency exchanges to profit from what is called arbitrage – simply buying cheaply and selling at higher prices. Really, they just took investors’ money.
Global Trading used a bot on Telegram, too. The investors could send a balance inquiry message and get a response with false information about how much was in their account, sometimes even seeing balances climb by 1% in an hour. With returns looking like that, who could blame people for sharing the scheme with their friends and family on social media?
