Cryptocurrency fraud - Deception, false promises, and utopian profitsIncreasingly, investors are turning to the Financial Market Authority (FMA) in Austria, which has experienced a surge in the number of complaints from investors who have lost their money in cryptocurrencies and fear becoming victims of fraud.

As part of market supervision, certain, frequently used fraud models have been identified, which will be briefly presented below.

Ponzi Scheme

In this type of fraud, investors are lured into investing in cryptocurrencies like Bitcoin, Ripple, or Ethereum under the promise of high returns and low risk. Initially, the returns are often paid out, but not through the sale of a specific asset. Instead, early investors receive payments from the funds of new investors. However, as more and more investors demand a payout or no new investors are added, the system collapses.

Exit Fraud & Pretend HackerUnder

"Exit Fraud," a scammer lures investors into investing in a company, often through an Initial Coin Offering, and creates the appearance of a legitimate business.

After some time, all contact with the company is lost, the people behind it usually become untraceable, and the investors' money disappears.

In "Pretend Hacker," the scammer informs the customer that a hacker attack on the company has occurred, and as a result, their money or crypto-assets have been lost.

The contact with the company then usually breaks off, and the investors often suffer significant losses.Manipulation of Curses through Digital Technology.

Through social networks, scammers attract investors to trading platforms for non-exchange products (CFDs, binary options, crypto-assets, etc.).

The promise: minimal risk and a guarantee against capital loss, which comes into effect after a certain investment.The platforms are run by software developed by the scammers themselves, which manipulates the prices and presents them in a positive light. As soon as investors invest, their virtual account balance grows rapidly, and "returns" are not paid out.

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