Binance warns of increasing scams

The number of romance scams reported by users and victims on cryptocurrency exchange Binance has more than doubled in the twelve months to August 2023 compared to the previous period.

The growth in the use of social networking and relationship apps has contributed to the increase in the number of cases of ‘pig slaughter’, as these scams are known.

Binance informed this in a note to the live coins which puts user safety at the forefront and has therefore compiled a list of the most common scams in the crypto universe, including the tactics most commonly used by criminals and how to protect yourself from them.

The survey is part of an in-depth series of posts titled “Popular Cryptocurrency Scams in 2023”.

With the number of reported cases doubling in the past year, so-called relationship fraud is making headlines around the world. Binance alone has seen an increase of more than 100% in these cases reported by customers and victims between 2022 and now.

This type of investment scam targets inexperienced or unsuspecting investors and consists of approaching the victims, luring them with promises of high returns and a glamorous lifestyle.

Criminals often infiltrate victims’ lives through social media or dating apps, building intimacy and trust over time and scrutinizing their habits.

After gaining trust, they present the “great unique opportunity” for investments, which promise to change the person’s life, presenting fake profits received by the scammer in the so-called must-have investment. Or they simply ask for financial help, opening the door for a much bigger scam.

Once the trust of the victims is gained, the criminals make sure to invest significant sums in the bogus platform, and soon after they suddenly disappear, leaving no trace or possibility to recover the lost money.

Understanding how scams work is a good starting point for protecting yourself against them, Binance points out.

Unraveling romantic scams

As cryptocurrencies gain popularity, scams are becoming more common, targeting mostly new users who are new to the industry.

This happens with every financial product and cryptocurrencies would not stay off the radar of scammers. It is therefore essential to know what types of scams exist in order to avoid possible attacks.

Among the most common scams are those led by “investment experts” and self-proclaimed “Binance (or other exchange) employees,” who try to win over investors with promises of high profits.

People can also be approached with online dating proposals that seem too good to be true, and invitation-based investment programs that promise financial returns in exchange for recruiting new people.

Tips to avoid crypto scammers

Protecting funds is essential. Below are some of the best tips to help investors avoid and identify scammers looking to steal their cryptocurrency.

Identity Verification: it is always recommended to verify the authenticity of anyone claiming to be an “exchange employee”.

Binance, the largest brokerage in the world, has developed Binance Verify, a simple and free tool that allows anyone to check whether that person is really an employee of the institution. Binance employees will never proactively reach out via social media to discuss investments or offer exclusive services.

Promises of unreal returns: if it’s too good to be true, it probably isn’t true. That is the classic phrase of Binance investigators busting criminal schemes. It is important to be wary of ‘investment specialists’ who promise guaranteed annual returns in excess of 20%, as this rate is considered extremely high in the investment world. Cryptocurrencies often generate significant profits, but they are also very volatile. Return guarantees are a warning sign of a scam.

Background check: before investing it is essential to thoroughly research the history of the “investment program”. Use tools like who.is and Scamadviser to assess project reliability.

Love or deceit? Tips for spotting cryptocurrency romance scams

Another common type of scam is related to online relationships. Scammers pretend to be people interested in romantic relationships, but in reality they have shady financial intentions.

Search images: use image search applications such as TinEye, Google (image search) or Baidu (image search) to verify the authenticity of social media profile pictures.

Request name: conduct web searches using keywords such as “scams,” “romantic scams,” or “dating scams,” tied to the name of the person the person is interacting with online.

Video call: ask for a video call to confirm the person’s identity. If they avoid this eye contact, stay alert as scammers will make excuses to avoid being revealed.

Finally, tiered investment plans have emerged as another type of scam to avoid. Such schemes promise high financial returns based on the number of new users the investor invites to participate.

To stay safe in the digital currency world, it’s important to be wary of unsolicited investment advice, online relationships that move faster than usual, and layered investment plans with seemingly high returns.

By understanding the realistic return on investment, verifying sources, conducting necessary background checks, and using available research and due diligence tools, users can protect themselves against common scams and secure their assets.

Source: Live Coins

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