Last Updated: May 6th, 2022
At Cryptomate we take scam risks very seriously. Please read through some of these popular scams to help prevent you from becoming a victim.
A popular scam is a ‘broker scam’ which involves an individual reaching out to you and requesting to become your “investment advisor” or “trader.” They often claim to guarantee profits and will request that you only fund your account with cryptocurrencies. Unregulated broker scams are a constant and serious threat in the industry.
Warning red flags:
• Unsolicited calls, emails or private messages through social media
• Pressure to invest quickly and not miss out on opportunities
• Claiming to be part of a regulated or legitimate exchange or platform
• Refer to themselves as an “investment advisor”, “broker” or “account manager”
• Provide “promotional” offers or offer “bonuses” for larger deposits
• Do not allow you to fund your account directly. They will instruct you to create an account with a regulated exchange and transfer your crypto to their account.
• Demand you to pay a “tax”, “fee”, or “commission” to withdraw your profits
• Will require the use of Remote Access Software such as Teamviewer or Anydesk
• Unable to properly explain how they got your contact information.
The best way to protect yourself is to educate yourself on how these scams work. You should be cautious of unrealistic promotions and unrealistic gain potential. Once you send crypto to the firm, there is no way of retrieving it. The funds will be lost. Some scams even ask you to send additional funds to ‘unlock’ your existing funds.
Avoid unregulated brokers:
• Stick with well-known and popular firms
• Google the company name + “scam” to find results relating the company’s legitimacy
• Look out for negative customer experiences about not being able to withdraw funds
• Find out where the company is registered and if there are reliable customer reviews
• Find out information regarding fees upfront and in writing
• Don’t feel pressured to transfer your funds or any crypto to an exchange
• Be extra cautious with companies or individuals claiming to be “Blockchain Recovery Experts” claiming to be able to retrieve your stolen funds
Romance scams involve people being duped into sending money to criminals who go to great lengths to gain their trust and convince them that they are in a genuine relationship. They use language to manipulate, persuade and exploit so that requests for money do not raise alarm bells. These requests might be highly emotive, such as criminals claiming they need money for emergency medical care, or to pay for transport costs to visit the victim if they are overseas. Scammers will often build a relationship with their victims over time.
Signs your friend or family member may be involved in a romance scam:
• They may be very secretive about their relationship or provide excuses for why their online partner has not video called or met in person. They might become hostile or angry, and withdraw from conversation when you ask any questions about their partner
• They may express very strong emotions and commitment to someone they have only just met
• They have sent, or are planning to send, money to someone they have not met face-to-face. They may take out loans or withdraw from their pension to send money.
How users can stay safe from romance scams:
• Be suspicious of any requests for money from someone you have never met in person, particularly if you have only recently met online.
• Speak to your family or friends to get advice.
It is important that no matter how long you’ve been speaking to someone online and how much you think you trust them, if you have not met them in person, it’s important that you do not:
• Send them any money
• Allow them access to your bank account
• Transfer money on their behalf
• Take a loan out for them
• Provide copies of your personal documents such as passports or driving licenses
• Invest your own money on their behalf or on their advice
By agreeing to our Cryptomate scam warning, I agree to the following points:
• I am agreeing to purchase Bitcoin/Cryptocurrency from Cryptomate and its associated companies.
• I have read the Scam Warning, nothing stated in this warning is applicable to me or any purchases I will make, and I understand the associated risks.
• I understand and accept that Bitcoin/Cryptocurrency investments are highly volatile and have a significant degree of risk associated with them.
• I am sending payment from my own personal account using my own lawfully obtained funds/savings/earnings. I am happy to provide any information relating to the source of funds if requested.
• The value of any investment(s) processed on behalf of clients by Cryptomate may have their income yield(s) go up or down. You may get back less than you invested.
• It is the client’s responsibility to ensure all information provided is correct. Cryptomate cannot be held responsible for any losses as a result of incorrect data provided.
• I understand that Cryptomate under no circumstances gives advice of any kind and is an execution only service. They cannot be held responsible for any losses.
• There is no Third-party involvement in any transaction carried out with Cryptomate and any transaction made is not on behalf of any friend, acquaintance or family member.
• I have not been asked to install, nor do I already have installed, TeamViewer, AnyDesk or any other desktop sharing program and I confirm I have sole control of my device.
• I acknowledge and agree that this agreement has been entered into of my own free will and accord and I am not under duress.
I accept the terms stated above and I legitimately authorise payments for any purchase through Cryptomate.