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Trading cryptocurrencies has become a legitimate and sometimes lucrative investment avenue. Most people have heard of ‘get rich’ stories through trading cryptocurrencies. However, as this type of investing has become more popular, it has also attracted organised criminals such as fake crypto brokers or traders who operate fancy fake broker websites. Read more about cryptocurrency trading scams and if you are the victim of a crypto broker scam, get in contact with our Cybertrace Cryptocurrency investigators for advice.
Investing via a fake broker
Often, these scammers are very well-organised, and the most common type of cryptocurrency scams encourages individuals to invest with the assistance of a crypto broker via the broker’s website. The crypto broker in turn trades the cryptocurrencies on behalf of the investor, and the investor can monitor the trading and, in some instances, even withdraw small amounts of money. However, you’re likely not seeing a real trading account, but merely a fabrication created by the fake crypto broker, which looks like a real account. No trades have actually been made on your behalf, and this is simply a crypto trading scam.
Starting small, then asking for more (and more)
The fake crypto broker’s company and their websites appear legitimate, and it can be very difficult to tell it’s a fake broker website. It’s highly likely that you’ll start with a small amount, maybe a few hundred dollars. The fake broker will often send you a payment back after your first investment; this could be as much as $1,000 or $2,000. They’ll advise you that your investment performed well and you’ve achieved a great return!
At this point, you’ll be encouraged to invest a larger amount. And it seems like a great idea, and you may even be encouraged to refer your friends to the fake broker website as you’ve just seen what a great return you received on your first investment. It’s looking like you’ll be on that island with a pina colada in no time!
At this point, there will no doubt be some issue that arises and you won’t receive that second pay-out. Instead, you’ll be advised that the market goes up and down and now is not the time to stop trading. Instead, the scammers will encourage you to invest even more money into the trading scam.
How to Spot a Fake Crypto Broker in Australia
Fake crypto brokers often use professional websites, trading dashboards and account managers to appear legitimate. Warning signs include:
- Unsolicited calls, messages or social media approaches
- Promises of guaranteed or unusually high returns
- A dashboard showing profits that cannot be independently verified
- Requests to deposit cryptocurrency or send money to unrelated accounts
- Further “taxes”, “fees” or commissions required before a withdrawal is processed
Before transferring money, independently check whether the business is authorised to offer the investment in Australia. Use ASIC’s investment checks and Investor Alert List, and make sure the website and contact details match the official records.
Cybertrace has published warnings concerning The Coin Trust, Victoria Coins, Option 888, ZoomTrader and Crypto Trade Book, StockSCM, YorkCG and CoinsHype, YM Coin and Coin Trading Global. The brand or website may change, but pressure, false profits and withdrawal problems are recurring features of cryptocurrency trading scams.
Global operations
We’ve helped clients who had lost hundreds of thousands of dollars to cryptocurrency scams to get their money back. Often, the fake broker hide behind shell companies, anonymous websites and operate across multiple countries and jurisdictions to make it harder for law enforcement to track them. Cybertrace has the ability to identify the perpetrators behind these crypto broker scams. Recover your money and bring the offenders to justice.
How Cybertrace can help
Unlike other services, which promise to recover your stolen money, we don’t just “file a complaint” on your behalf. We use our experience and global network to extensively investigate the matter and person(s) responsible for stealing your money.
Cybertrace assure you of full transparency whilst providing you the best chance of recovering your money. We even offer subscriptions to our proprietary database containing a list of 3.5 million known illicit (criminal) wallet addresses. So you can conduct your own due diligence before sending crypto to anyone.
If this situation sounds familiar and you’re either in a scam or have been scammed. Then don’t let the scammers know you suspect something; instead, contact us to discuss how we can help.
Hello, I began investing in a company called Coiniswap. Supposedly they operate out of Switzerland. They have a website, http://www.coiniswap.com. My initial deposit was $320 Canadian to open my account with them. The initial deposit was on 14 Nov 2021. Every day a guy named Adam Newman called me and chatted with me via WhatsApp. Over time I was introduced to the North American trader, Adam Price phone number: 12894264410. He was the big shot of Coiniswap. He offered me a VIP position, Diamond group. In total I sent over $90,000 Canadian dollars. In return I would receive $120,000. I fell for it, the big scam. Platters were, Adam Price, Adam Newman, Thomas and Margaret Mayer. All of them are criminals. All transactions were via Shakepay (Bitcoin) to my Coiniswap wallet address: 39z7rQnmGCE4zVrgiXe3jzHwXyv2aQMBtm
Hi Duane, If you’re interested in our team assessing your case, please email us at [email protected]. Thank you.