Metro Manila (CNN Philippines) — Is cryptocurrency a rip-off? It is not, however you must nonetheless watch out with fraudulent schemes that trip on its reputation. Cryptocurrency is a risky sufficient funding as it’s. Do not fall prey to those widespread cryptocurrency frauds.
Rip-off No. 1: Pretend cryptocurrencies
A typical rip-off is presenting a brand new cryptocurrency as an alternative choice to fashionable digital financial currencies like Bitcoin. Fraudsters would lure victims into believing it is too late to money in on Bitcoin, and they’re going to introduce a pretend cryptocurrency.
In america, the folks behind My Massive Coin have been charged for working an elaborate cryptocurrency rip-off that defrauded at the least 28 buyers out of six million {dollars}. Authorities realized the victims have been requested to put money into pretend cryptocurrency, not realizing the funds have been re-directed into the fraudsters’ financial institution accounts.
Rip-off No. 2: Giveaway Rip-off
On June 11, 2020, hackers took over accounts belonging to well-known figures like Barack Obama, Elon Musk, and Invoice Gates in an obvious effort to earn earnings by scamming folks out of Bitcoin.
Often called ‘Giveaway Rip-off,’ hackers used the personalities’ verified accounts to encourage folks to ship Bitcoin to a digital pockets and promise to ship again double the cash in return. It is usually carried out underneath the guise of wanting to offer again to a group or followers. However, as an alternative, the fraudsters make off with the cash.
This additionally occurs with impostor accounts that make it look like it was the distinguished particular person saying it. The primary rule is at all times to query tweets or posts that ask to have cryptocurrency transferred to a digital pockets. Additionally it is safer to keep away from the publish for per week till you study that the publish is legit.
Rip-off No. 3: Ponzi or pyramid scheme
In April 2018, Arnel Ordonio and his spouse Leonady have been introduced earlier than some 50 victims in Camp Crame, all demanding the return of their cash. The suspects have been captured in an entrapment operation in Vigan Metropolis. Police mentioned the Ordonios rode on Bitcoin’s reputation, promising folks straightforward cash and luring them into investing of their enterprise.
The PNP described the rip-off as just like pyramid schemes, however with using digital cash. Traders have been promised at the least 30% revenue in about half a month for a minimal bankrolled capital of P90 thousand. A few of the investments went as excessive as P29 million.
To guard your hard-earned cash from cryptocurrency scammers, the Securities and Change Fee (SEC) has suggested the general public to not transact with entities not registered with the SEC.
Rip-off No. 4: Cookie-cutter web sites
In March 2020, the SEC suggested the general public in opposition to the unregulated entity ‘Bitcoin Revolution,’ which is discovered to be utilizing the area ‘the-bitcoinrevolution.com’ to solicit investments within the nation. The SEC added that the entity is infamous for utilizing pretend celeb endorsements on-line, together with Senator Manny Pacquiao, Former Senate President and Home Speaker Manny Villar, and Boy Abunda, to entice Filipinos to put money into its scheme. The Bitcoin Revolution claims to supply a singular automated buying and selling system or platform, promising successful fee of as excessive as 99% per transaction.
‘Bitcoin Revolution’ additionally claimed a few of its merchants grew to become millionaires in lower than two months by merely investing in its scheme, which SEC described as “too good to be true.”
The SEC warned the general public to be cautious of pink flags which are attainable indications of a Ponzi Scheme. Regardless of working with using cookie-cutter web sites just like cryptocurrency scams, the SEC additionally famous that the scheme of ‘Bitcoin Revolution’ is synonymous with providing and promoting securities within the type of funding contracts.
Rip-off No. 5: Malware
Hackers use malware to get your passwords and private information. They’ve additionally focused cryptocurrency wallets when they’re related to the web. Be cautious of clicking suspicious hyperlinks in your electronic mail or downloading recordsdata from websites and social media. Some fraudsters additionally deceive victims by posting about web sites the place they declare people can mine bitcoins without cost. Keep alert when seeing posts which are too good to be true.
Don’t be a sufferer of cryptocurrency scams
Scams are all over the place on-line. Fraudsters trip on the digital financial mechanism’s reputation to prey on the folks’s vulnerability in the direction of the get-rich-quick schemes. Report suspicious funding schemes to the Enforcement and Investor Safety Division of the SEC via e-mail at epd@sec.gov.ph or via landline (02) 8818-6337. Beneath the Securities Regulation Code, those that act as salesmen, brokers, sellers, or brokers of fraudulent funding schemes could also be held criminally liable and penalized with a most wonderful of ₱5 million or imprisonment of 21 years, or each.
For suspicious on-line messages, report these incidents to the PNP Anti-Crime Group via its web site at www.pnpacg.ph, via hotline quantity at (02) 8723-0401, or via electronic mail at acg@pnp.gov.ph.
You may additionally report suspicious messages to the NBI Anti-Fraud Division at (02) 8525-4093 or e-mail at afad@nbi.gov.ph. Alternatively, you might also ship a message via the NBI’s web site at www.nbi.gov.ph or their official Fb account.
The place to Make investments
Whereas warning the general public in opposition to fraudulent funding schemes, the federal government nonetheless encourages investing in secure and safe alternatives.
One of many most secure examples is authorities bonds. These bonds are secure, safe, and contribute to initiatives that will profit the nation.
The federal government can also be pursuing reforms to ease and simplify investing in legit alternatives. The Duterte administration’s proposed Passive Earnings and Monetary Intermediaries Taxation Act (PIFITA) will simplify the tax regime for bonds and shares by lowering the variety of tax charges on monetary transactions from 80 to 36. As soon as enacted, PIFITA will make it simpler for on a regular basis Filipino buyers to put money into secure and safe alternatives.
