Latvian Watchdog Warns Of Rise In Cryptocurrency Scams

An increased number of frauds with digital currency investment schemes have been reported to the Latvia’s Financial and Capital Market Commission (FCMC).

Investors who have been scammed are typically lured by high-interest rates for short-term investments or approached by the fraudsters who are impersonating regulated companies to trap potential victims.

Scammers encourage consumers to share their contacts so that they can approach them with bogus offers and then offer investments in bonds, stocks, Forex currency products, and cryptocurrencies that are not traded on a trading venue are worthless, exaggeratedly priced or do not even exist. When an investor logs into their account, it may look as though they are making profits initially (due to fake data), but eventually shows ‘trading losses’ even though no actual trading is taking place.

Often the advertisements about crypto investments on the internet are frauds.

“Fraudsters tend to advertise cryptocurrency investments on the internet, sometimes using the names and images of well-known individuals or licensed companies,” the Latvian regulator stated.

The FCMC urged investors to become vigilant against these fraudulent platforms and become cautious before any cryptocurrency investments.