Another warning issued by a financial regulator concerning the increasing number of crypto investment frauds has been released this Monday by the Latvian Financial and Capital Market Commission (FCMC).
The watchdog stresses that ads on the net covering crypto investments are most of the time scams used to expertly steal your investments.
The most common scheme is the offering of high interest builds based on short term investments, which if you think about, is an impossible maneuver. Needless to say, some are impersonating legitimate brokers or similar financial service providers to trap users.
Most of the scammer platforms and websites look genuinely legit, and are more than capable of luring in traders from all around the internet. These users are prompted to give away contract info, as well as other more sensitive information, so that the fraudsters can further bridge the gap.
“Such fictitious companies may offer you 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” said the regulator in a statement.
Latvia’s FCMC further wishes investors to know that the issuance and circulation of crypto coins is not regulated in the country, which is the main reason why many locally based scams exist today. However CFDs trading, as well as forex pairs, are legitimized by the overseer.