Spain police warn investors of surge in crypto scams


TL;DR Breakdown

  • Spain police warn locals about rising crypto scams.
  • National police reveals make believe tactics crypto scammers.
  • Crypto scam surge in UK in 2021.
  • How not to fall for crypto scams.

The National Police of Spain has issued a warning to citizens about the rise of cryptocurrency-related scams recently. The authorities’ last two reports before the warning were worth $278,385 lost to crypto scams.

Both scam operations were a success because series of companies have flooded the market, offering crypto investment opportunities promising high returns, authorities noted. However, these crypto scam firms demand a huge amount of money for investment to guarantee high crypto returns, eventually becoming a scam.

The police stated that these firms have profiles on social media with thousands of followers, giving an impression of legitimacy to potential investors.

Spain police said that the firms simply entice investors to put money in their platforms, and after some time, investors see a supposed growth in the capital invested. But when investors try to withdraw these funds, they find that it is impossible to do so. They demand a huge amount to withdraw funds, which is when users know they have been scammed.

Crypto scams, burgeoning business for the wicked

Cryptopolitan reported on Monday that cybercriminals continue to capitalize on digital currency’s growing attention and popularity to siphon money from unsuspecting investors. The fraud and cyber reporting center of the United Kingdom (UK), Action Fraud, disclosed that the residents have lost over $200 million (or £146,222,332) in cryptocurrency scams since the beginning of the year.

The same is what Spain police is warning investors of after a $278,385 only days back. The Spanish police state that many of the scams highlight the scammers’ social engineering, capable of establishing a relationship of trust with their victims without raising suspicions.

In Spain, local media has reported series of crypto scams cases, with cases already piling in court since June.

The National Police gave series of recommendations to avoid being the victim of an investment scam. It recommended that potential investors research the background of the company or platform they are trusting with their funds. They also told investors to file a complaint with the authorities quickly in case of any suspicion.

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Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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