Crypto scam is now one of the most prevalent illicit activities across the financial market as malicious actors continue to take advantage of traders. Although some can be recognized from a distance, other scams would have occurred before knowing it. However, the latest statement from the finance department of Idaho has warned traders to be careful of a new crypto scam technique that is floating around now. The complete statement released by the ministry has full insight into what the scam looked like.
Crypto scam on the rise in Idaho
According to the ministry, the scammers have been promising traders who wish to invest of profits of about 80% every day. To top it up, the scammers also assured the investors that the investment was not risky as they would not suffer any loss in the process. The regulator mentioned that the crypto scams have not only begun recently but have been around for a long while.
The statements said the scammers are now moving toward Idaho residents in the last few days. Giving an example of the companies involved in the crypto scams, the regulator pointed to Crypto FX Direct, Finvest Trading, and Shield Investors. However, the regulator claims that most of these companies’ websites are now offline when they try to access them.
The regulator explains the scammers’ modus operandi
The regulator bemoaned the massive rate of profits promised to lure unsuspecting investors into committing funds to the scam businesses. It noted that the message of helping users realize gains of about 80% were also branded on their websites before they went down. Should an investor be interested in their services, the crypto scam business will ask such an investor to purchase one of their plans.
Notably, these plans can only be purchased using digital assets of various kinds. For example, Finvest trading will ask users who have an intention to join the platform to choose between their $500 plan or other plans with the highest plan at $100,000. All this will be completed before the investor can be granted full access to the website.
The crypto scam companies offer investors this sort of plan under the guise that they are regulated by providing fake licenses. After the agreed investment period, the firm will ask the investor to pay an extra levy to facilitate the withdrawal of their profit. The regulators have since mentioned that the businesses involved in the crypto scam are not officially licensed to operate in Idaho.
