October: Scam of the Month

Oct 17, 2021 | Weekly Tech Trends and Tips | 0 comments

stack of cryptocurrencies 2021 08 26 17 52 34 utc 1

In our monthly newsletter we like to highlight a real scam that was submitted by our security team. Our goal is highlight real-world, real-life tactics that online criminals are using RIGHT NOW, so you can be prepared and informed an attacks comes to you. 

Scam Scenario:

Tyler was fascinated with the huge rise in bitcoin and other cryptocurrencies. He’s recently been using his phone application to invest in small portions of cryptocurrencies with some of his leftover money from his allowance and his paper route. Although he was seeing some positive returns, he wanted more. When on social media one day, Tyler saw a post by a popular influencer. The post mentioned they would triple anyone’s cryptocurrency in one week with their proven method.

Tyler was ecstatic and followed the steps to send the cryptocurrency to their account. Tyler waited patiently, but the week passed, and he didn’t see his returns or original investment. The influencer later posted that their account had been compromised, and the criminal had posted the message about this cryptocurrency scam. Tyler was embarrassed and chose not to tell his parents or authorities.

There are a few red flags in this scenario:

  1. The influencer claimed they could triple any investment in one week.
  2. Tyler lacked patience and wanted to see returns quickly
  3. Tyler let his embarrassment keep him from making any additional action.

This is what’s called a cryptocurrency multiplier scammer. These types of scammers target investors who want to see quick returns on investment. In actuality, few investors ever see returns (or their deposit) ever again. These scammer usually pocket the money without returning a penny. 

These types of scams are increasing popular on social media platforms. It’s easy to fake an influencer or celebrity account to make it look legit. And in Tyler’s case, legitimate accounts can also be compromised and used by scammers to lure trusting (and impatience) investors. 

Make sure to keep kids and teens aware of the pros and cons of investing online, and how to avoid and report fraud to the proper authorities. 

For more tech tips and trends, read more from our blog!