Investors Beware; Man Swindled in Bitcoin Crypto Scam

With an initial amount of £200, A resident of Thames valley has fallen victim to a fraudulent Bitcoin Investment scheme.
Tips on how to recognize crypto scams and Defi scams and the common types of crypto scams used in recent times.

Where the money comes Scams and frauds are sure to follow the same course, Similar to Crypto. A British man from Thames Valley is said to have been scammed off £20k in a fraudulent crypto investment scheme.

The victim started off with an ‘investment’ of £200 which he sent to a Bitcoin trading firm which later convinced him to send more, which he did. After adding in £20k, the firm told the victim that his ‘investment’ had doubled to £41,532.

Reports from Royal Borough Observer show that after the victim wanted to liquidate his ‘investment’ by selling everything and closing the trading account which he had signed up with. Shock befell him after the firm informed him that his investment value had gone down and all that remained was worth £19.18.

This is the sec case that has been reported in the same community in a time span of two weeks.

Common Crypto Scams Investors Should be Aware of

Bitcoin Investment Schemes; Like in the previous case, The scammers contact you in the name of investment managers who have made it in the crypto world promising investors a large amount of money after investing. They later ask for a down payment or a starting amount to start the investments. They later swindle off the money. They can also take photos of celebrities and impose them on fake accounts and make it seem as if the celebrity is advertising a certain promotional scheme. They can either use blogs, websites or even serious company names to make it look real.
Rug Pull Scams; This is where scammers put up a new project e.g a coin and ask investors for funds. After receiving the funds, the scammers dsapppear leaving investors with a valueless investment.
Romance scams; Most popular on social media where two parties engage in a strictly online and mostly long-distance relationship. After quite some time of bonding, The ‘scammer’ party asks for a certain amount of money in form of cryptocurrency and after sending, the party disappears with the money.
Phishing scams; This happens when scammers send malicious links to your email account to a fake website. This act is in search of personal information especially unique private key to digital wallets. It is always advised not to enter any crucial or important personal details from an email link.
Ponzi schemes; Talking of huge profits with low risks. Ponzi schemes pay older investors with investments from the new ones. There are zero investments at the start and it all goes in circles where scammers search for new investors and there is no guarantee of returns.