Crypto Scams on Social Media

NASSAU, BAHAMAS – Fintech experts are warning social media users about potential scams involving digital assets – namely crypto currencies such as bitcoin.

Kendeno Knowles reports tonight that scammers have hacked several social media accounts locally, targeting the followers of those users with claims of massive returns on small blocks of bitcoin.

Local fintech professional N’nyhn Fernander says users on Facebook and Instagram should be asking themselves when they come across posts or accounts promoting crypto currencies.

“If somebody can come to you and say, ‘Hey, $500 – I could turn that into $10,000 in a week.’ Why wouldn’t they just solely be doing that for themselves?” Fernander said.

Fernander was speaking specifically to a recent incident, where hackers took control of a local user’s account. The hacked account then featured a series of posts, claiming they had invested a minimum amount in bitcoin, and received an up to $50,000 return in the space of three hours.

Michael Clare is a certified blockchain expert and financial professional. He says there are bad actors in the space who will capitalize on the ignorance of users, targeting users in low-income countries, particularly those who may be looking for a quick fix to financial problems or have aspirations of wealth.

“People who are financially susceptible just trying to find a way out, trying to find their big ticket out. So, they would more so target the most vulnerable with these less valuable or worthless coins, get you to invest in it, once they get your funds, they take off with it,” Clare says.

“I would say the simple thing of always, if it sounds too good to be true, it’s probably not true. If it was possible for everybody to buy bitcoin and make $100,000, we’d all be rich.”

Fernander saying that those interested in investing in crypto currency should first consider the fact that it is no different than options in the existing equities market.