Cyprus police warn public after crypto investor loses $58K to advance fee fraud

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As a savvy crypto investor, I’ve learned the hard way about the importance of caution when it comes to investing in digital currencies. Recently, a fellow Cyprus resident unfortunately fell victim to a cryptocurrency scam, losing a substantial $58,000. This serves as a stark reminder that the crypto world can be unforgiving and full of potential pitfalls, so I urge all fellow investors to exercise extreme prudence when making investment decisions.

As a crypto investor myself, I’ve come across some worrying news: It appears that my fellow investors might have fallen victim to a fraudulent crypto trading platform under investigation by the Limassol Criminal Investigation Department. This platform is said to have swindled a 50-year-old individual, highlighting the importance of due diligence when choosing platforms for our investments.

Remarkably, it was in December that the victim encountered what seemed to be a genuine website offering investment possibilities similar to a typical cryptocurrency trading platform. Upon initial inspection, this site looked authentic, boasting features like comprehensive charts, user-friendly dashboards, and profit-monitoring tools.

Impressed by the polished look of the platform and its guarantee of substantial profits, the individual decided to invest a combined total of $58,000 over several deals, trusting that he was building up his earnings.

The altered dashboard, a device often employed by swindlers to deceive their targets into thinking their investments are thriving, consistently displayed increasing earnings, thus giving an authentic impression of growth.

As a researcher, I discovered that when the alleged profit-earner attempted to withdraw their gains, the con artists declined to disburse the funds, instead asserting that extra charges or deposits were necessary to “activate” or “unfreeze” the profits.

In many instances of cryptocurrency swindles, a method called “advance fee fraud” is employed. This strategy involves tricking individuals into handing over additional money on the promise of some false benefit, but ultimately leaving their assets untouched and unavailable for use.

In simpler terms, the Financial Crime Investigation Bureau – an organization focused on stopping financial scams and cybercrimes – recommends keeping confidential financial and personal information private. They also suggest that potential investors should only put their money in established, legally authorized financial institutions.

Moreover, the office emphasized that it’s essential for investors to verify the trustworthiness of any advisor or platform they engage with.

2024 saw repeated warnings from the Washington State Department of Financial Institutions about potential issues.

The agency called attention to a case in June involving a scam related to advance fee fraud, where an individual lost approximately $310,000 in cryptocurrency to a supposed digital asset trading platform known as Ethfinance. Furthermore, the agency cautioned users about two other platforms suspected of operating similar fraudulent schemes.

In the coming month, a complex fraud was exposed. Scammers lured potential victims with fake loan offers for involvement in cryptocurrency investment plans. They promised that earnings from trading activities would be sufficient to meet the loan repayments.

Consequently, as their earnings were frozen on the platform, victims were compelled to pay back their loans personally since they couldn’t access their profits.

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2025-01-06 14:10