Cryptocurrency scams—those related to investing in and transacting virtual currencies—are increasing significantly due to the rise in the value of these currencies and their growing presence in the media.

Over the past year, in Catalonia alone, 800 people have suffered a scam related to the purchase of or investment in virtual currencies, with more than significant losses: the amounts defrauded ranged between €20,000 and €40,000 per victim.

HOW DO CRYPTOCURRENCY SCAM NETWORKS OPERATE?

The distinctive feature of this scam network is that they create replica investment websites. They have an infrastructure very similar to what a multinational might have. They have their own call center, with operators making calls, and they often invest in advertising to attract victims, whether through Google AdWords or other platforms such as social media.

In addition, the design of their portals is highly convincing, creating the impression in the victim that it is 100% safe and that they are carrying out a legitimate transaction; you can even see how the value of the investment increases. The problem arises when they try to withdraw the money.

Another distinctive feature is that they have a group of highly trained people who coax and deceive their victims using social engineering techniques, earning their trust to such an extent that victims even feel guilty when they begin to suspect they are being scammed.

At this point, the scammers take offense, making the victim doubt themselves, and once the victim insists, that is when the threats and psychological harassment begin.

Sub-inspector José Ángel Merino, head of the Central Unit for Economic Crimes of the Mossos d’Esquadra, presented a report in May in which he already warned that crimes related to cryptocurrencies increase by between 15% and 20% each year.

THE VICTIM PROFILE: RETIREES OR UNEMPLOYED PEOPLE WITH SAVINGS

People aged 65 and over who are already retired and have savings are usually the most common victims. Also, people who are unemployed and have read a lot online about investing in cryptocurrency, have been following it in the press, and believe they are more or less informed. They think they have enough information to invest on a portal that does not even have CNMV approval. That is where the scam begins.

The problem is that people who have suffered a cryptocurrency scam are not reporting it out of embarrassment.

Criminals are clear about it and often have their servers in countries that do not have international treaties with Spain. Although not always—which is why reporting is so important.

TIPS IF YOU WANT TO INVEST IN CRYPTOCURRENCY SAFELY

At onBRANDING, we recommend:

1. If you want to invest in cryptocurrency, the most important thing is to put yourself in the hands of professionals in the cryptocurrency sector.
2. Stay up to date with the news, the media, and CNMV announcements.
3. Invest amounts of money that you can afford.
4. And, of course, always verify that the company is registered with the CNMV.