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  Geebo 8:00 am on August 20, 2024 Permalink | Reply
  Tags: gold, investment scams, Investors ( 2 ), precious metals, Scams ( 1,354 ), silver   

  Gold Investment: Not as Safe as It Seems 

  

  By Greg Collier

  For months, we’ve alerted our readers to gold bar scams, where criminals posing as law enforcement trick victims into converting their savings into gold, only to steal it. Today, we’re shifting focus to another type of gold scam, fraudulent gold investments.

  Recently, a couple from San Diego, like many others, sought financial stability through gold investments. Enticed by frequent radio advertisements, they decided to transfer a significant portion of their retirement savings into precious metals with a firm they believed was trustworthy. Unfortunately, this decision would soon prove disastrous.

  The firm in question had assured its clients that their assets would be safely held with a well-known trust company specializing in alternative investments, including precious metals. But earlier this year, investors began receiving alarming letters from the trust company. The correspondence indicated that the assets supposedly transferred to the precious metals firm had not been properly recorded, leaving many investors in a precarious situation.

  These letters revealed that not only were some investors’ purchases of gold and silver unfulfilled, but also that funds from the sale of these metals had not been credited to their accounts. As concerns grew, the trust company announced that it was severing ties with the precious metals firm, leaving investors to deal with the fallout.

  For the investors, the reality of their situation hit hard. The firm had closed its doors, and attempts to contact them were met with silence. With millions of dollars in retirement savings unaccounted for, the investors felt they had been left in the lurch. Now, they are part of a proposed class-action lawsuit alleging fraud, breach of fiduciary duty, and other violations.

  Investing in precious metals can be a wise decision, but it requires a thoughtful and cautious approach. It’s essential to work with dealers who have a strong reputation and a proven track record. Verifying their credentials and researching any past complaints or legal issues is a crucial first step.

  Understanding the associated costs, including premiums, storage fees, and transaction expenses, is key to making an informed investment. Additionally, it’s important to maintain a diversified portfolio rather than committing all your savings to precious metals. This reduces overall risk and provides more stability.

  As with any investment, it’s important to only invest what you can comfortably risk, as no investment is ever fully guaranteed.

  Investors should remain cautious when encountering advertisements on radio and podcasts, as these platforms often promote investment opportunities that may not be as secure as they seem. While such ads can sound persuasive, they shouldn’t replace thorough research and due diligence. It’s vital to verify the legitimacy of any investment, regardless of how credible the source may appear. Remember, even well-known personalities endorsing a product or service doesn’t guarantee its safety or success. Making informed decisions, rather than relying on marketing pitches, is the key to protecting your financial future.

   

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  Geebo 8:00 am on May 20, 2024 Permalink | Reply
  Tags: bitcoin ( 31 ), bitcoin atm ( 24 ), cryptocurrency ( 50 ), investment scams, Scams ( 1,354 ), social media ( 79 )   

  Couple loses $70,000 to social media crypto scam 

  

  By Greg Collier

  In the era of digital currencies and online investments, the allure of quick profits can sometimes overshadow the need for caution. This is a lesson painfully learned by a Durham, North Carolina, couple who found themselves scammed out of more than $70,000 over six months. The couple’s ordeal began innocently enough, with the hopes of funding home improvements and purchasing a new car, but it quickly turned into a financial nightmare.

  The story starts when they discovered a supposed investment opportunity through social media posts. These posts, which appeared to be from a relative, showcased luxurious purchases supposedly made through Bitcoin mining transactions. Intrigued and optimistic, they decided to explore this investment further, envisioning it as a pathway to achieve some of their financial goals.

  After clicking on a link in one of these posts, they were contacted via Instagram by someone claiming to be an investment coach. This individual guided them through the initial steps of investing, starting with a $3,500 investment. To their delight, the supposed profits appeared to skyrocket in a short period, jumping from $3,500 to an astounding $54,000. This seemingly successful outcome encouraged further investments.

  Throughout several months, 0they diligently deposited thousands of dollars into a Bitcoin ATM, all the while receiving messages from the investment coach indicating their funds were growing significantly. At one point, their account purportedly held over $159,000. However, when they attempted to withdraw the funds, the situation took a dark turn.

  They were informed that a cash carrier would deliver the funds in person, but this delivery never occurred. Suspicion grew, and a visit to the bank revealed even more alarming news. Scammers had gained access to the couple’s bank account, initiating numerous unauthorized transactions to Cash App accounts created in their names.

  The couple had never set up these Cash App accounts and were unaware of the transactions until the bank informed them. They traced the breach back to the information they had provided while setting up their online investment profile, which included sensitive personal and banking details. This data allowed the scammer to open the fraudulent Cash App accounts and siphon away their money.

  Despite reporting the fraud to both their bank and the police, the couple was informed that the stolen $70,000 was unrecoverable.

  They later discovered that the relative whose posts had initially inspired the investment was also a victim. Their social media account had been hacked, and the posts were part of the scammers’ strategy to deceive friends and family.

  This unfortunate experience highlights a crucial lesson: social media is no place to seek or take financial advice. The platforms are rife with misinformation, deceptive schemes, and fraudulent accounts designed to exploit the unwary. Investment opportunities touted through social media should be approached with extreme caution and thoroughly vetted through reputable financial advisors and verified sources. Always remember that if something seems too good to be true, it probably is. Protecting your financial well-being means staying informed, skeptical, and vigilant against the ever-evolving tactics of scammers.

   
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  Geebo 9:00 am on January 5, 2024 Permalink | Reply
  Tags: cryptocurrency ( 50 ), investment scams, pig butchering scam ( 14 ), Scams ( 1,354 ), stock market   

  Victim loses $90K in new version of infamous crypto scam 

  

  By Greg Collier

  One of the more egregious scams that has proliferated in the past year or so is the so-called pig butchering scam. It’s known as the pig butchering scheme due to the way scammers ‘fatten up’ their targets through emotional manipulation before ultimately guiding them to the financial slaughterhouse.

  Typically, pig butchering scams are a form of the romance scam. Once trust is established, scammers persuade their victims to invest in cryptocurrency. They steer the victims towards a fraudulent cryptocurrency exchange under their control, creating the illusion of rapid investment growth. However, when the victims attempt to withdraw their alleged profits, they are informed that additional payments are required before they can access their earnings. Regardless of the amount paid, the victims never receive any returns.

  However, more recently, a man from Missouri recently lost $90,000 to a similar scam except no romance was involved. The man had been successful investing in the stock market and wanted to get a jump on the next wave of investing. It was his belief that AI would be the next hot ticket in the investment market. So, he took an online class he thought was using Elon Musk’s Quantum AI technology to predict the stock market.

  The instructor of the class told his students the stock market was about to crash, and suggested they should sell their investments and invest the money into a cryptocurrency exchange. This is where the usual pig butchering takes place, and this story is no exception.

  After the Missouri man invested his $90,000 into the crypto exchange, he was told his investment garnered him a $2.5 million windfall. When the man tried to get his money out of the exchange, they told him he would need to upgrade to VIP status to withdraw his profits, and that would cost another $50,000. That $50,000 application fee couldn’t be taken out of his profits either, he would have to wire an additional $50,000. That’s when the man realized he had been scammed.

  While online investment classes can provide valuable education and insights into financial markets, there are potential dangers associated with them. Some online investment classes could be fronts for scams or fraudulent schemes. Participants may be persuaded to invest in fake or non-existent opportunities, resulting in financial loss.

  Unlike traditional financial institutions and educational programs, online investment classes might not be subject to the same level of regulatory oversight. This makes it easier for unscrupulous individuals to take advantage of unsuspecting participants.

  Some classes may create a sense of urgency to invest quickly or capitalize on time-limited opportunities. This pressure can lead participants to make impulsive decisions without proper research or consideration.

  To mitigate these risks, individuals interested in online investment classes should thoroughly research the course provider, check for reviews and testimonials, and approach any promises of guaranteed returns with skepticism. Additionally, seeking education from reputable financial institutions, universities, or well-known industry experts may offer a more secure learning experience.

   
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  Geebo 9:00 am on February 20, 2023 Permalink | Reply
  Tags: cryptocurrency ( 50 ), investment scams, pig butchering scam ( 14 ), romance scam ( 70 ), Scams ( 1,354 )   

  When romance and crypto scams meet 

  

  By Greg Collier

  Money can complicate any relationship. However, it’s not complicated if a person you never met in person asks you for money. That person is more than likely a romance scammer. Typically, romance scammers will cultivate an online relationship with their victim for months before asking the victim for money. Scammers will claim they have plenty of their own money, but it’s tied up for some reason or another. There is also a variation to this scam where the scammer doesn’t ask for money. Instead, they offer to help their victim.

  This scam has the unfortunate name of the ‘pig butchering’ scam. The scam is named this way because the victims are seen as the pigs that the scammers ‘raise’ before leading them to the financial slaughterhouse.

  It starts when the victim meets a potential romantic partner on a dating platform or social media. The scammer will string the victim along until the scammer tells their victim they can help the victim make money by investing in cryptocurrency. The victim is then directed to a cryptocurrency exchange run by the scammers. The victim will pay the exchange for their investment before being told their investment has had a substantial return. When the victim tries to get their money out, they’re told by the exchange they need to pay more money to get their returns. This will continue until the victim runs out of money or realizes they’re being scammed.

  This happened recently to a woman from San Antonio, Texas, who met one of these scammers on the dating platform Bumble. The scammer claimed to have grown up in Switzerland before coming to the US. The scammer quickly moved the conversation off of Bumble and on to WhatsApp. There, the scammer said he could show her how to invest in cryptocurrency with the New York Stock Exchange. She paid $6500 to what she thought was the NYSE. She was told that her money was garnering returns. The scammer must have thought that $6500 wasn’t enough because the victim said the scammer started becoming aggressive and threatening. The victim then found out that the exchange had no affiliation with the NYSE.

  While $6500 may be a fortune to many people, the victim is actually lucky. There have been instances where at least one victim has lost almost $2 million to the pig butchering scam.

  The pig butchering scam isn’t limited to dating apps. If someone messages you with promises of record windfall by investing in cryptocurrency, they’re more than likely a scammer. No financial investment is ever guaranteed to make the investor a profit.

   
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  Geebo 9:00 am on November 18, 2022 Permalink | Reply
  Tags: cryptocurrency ( 50 ), hostage ( 3 ), Instagram ( 17 ), investment scams, Scams ( 1,354 ), social media ( 79 )   

  What is the Instagram hostage scam? 

  

  By Greg Collier

  If you’re a regular reader of our blog, when you hear the words ‘hostage scam’ you may think it has something to do with the virtual kidnapping scam. Or since Instagram is involved, you might think it has something to do with your Instagram account being held hostage by scammers for money. However, it’s really an investment scam that forces its victims to help perpetuate the scam.

  While scrolling through Instagram, you may have come across posts of people claiming they’ve made a lot of money investing in cryptocurrency. If you have, you may have seen a victim from one of these scams. The scam usually starts when an Instagram user sees one of their friends make a post like this. The victim is directed to another Instagram user who can help them have the same financial success in investing.

  In one instance, a woman from Indiana was told by a so-called cryptocurrency expert, if she invested $500, she could multiply that investment. She sent the man $500 and later was told her investment ballooned to $5000. When she tried to get her money, the story took an ominous turn.

  The victim was told that if she wanted her money, she would first need to make a video where she has to say she made money through this investment scheme. This is where the hostage aspect of the scam comes in. Her money was being held hostage until she made the video. She did make such a video, but never received any money and was out her $500. But the story doesn’t end there.

  The video she made was shared by the scammers all over social media. This allowed the scammers to make their scheme appear legitimate, and they were able to lure in more victims. This led to the woman being harassed by other victims of the scam, thinking she was the scammer.

  Social media is not really a place where you should be taking investment advice. Considering how much misinformation is already shared on social media without verification, would you really trust investment plans from there?

  Unless you are already savvy about the ins and outs of cryptocurrency, it really should be avoided as an investment, as a recent crypto crash demonstrates. And as always, no investment is ever guaranteed a return. You should only ever invest money that you can afford to live without. There are no magical get-rich-quick investments.

   
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  Geebo 8:00 am on October 11, 2022 Permalink | Reply
  Tags: advance fee scam ( 44 ), bitcoin ( 31 ), Cash App ( 42 ), cryptocurrency ( 50 ), investment scams, Scams ( 1,354 ), toilet paper   

  Scam victim ends up with a briefcase full of toilet paper 

  

  By Greg Collier

  Opinions differ on whether cryptocurrencies are scams themselves, but due to the decentralized nature of crypto, it is vulnerable to scams. Not only that, but the get-rich-quick possibility that some see in cryptocurrencies leave them vulnerable to scams as well.

  One of the more popular crypto scams lately is a form of advance fee scam. Typically, scammers have been finding their victims on dating platforms. The victim is told the person they’ve matched with works for a financial company, and they can guarantee a profit if the victim invests in cryptocurrency. The catch is that the person they’ve just met will invest the money for them.

  After the victim gives the scammer money, the victim is later told that his initial investment has multiplied. However, in order to cash out, the victim needs to make another payment for ‘processing fees’ or some other made up charge. It’s usually at this point that the victim realizes they’ve been scammed.

  That’s not exactly what happened to a 26-year-old Colorado man, but he fell for a similar crypto scam, and ended up with an insulting consolation prize. The invested $23,000 on what he thought was a legitimate crypto investment he found on Instagram. The victim paid the money to the scammers through Cash App and Bitcoin.

  After a while, the victim received a briefcase that was supposed to contain the return on his investment of $210,000. But he was also told that he needed to pay $9000 to get the combination to the briefcase, which he did. Once the briefcase was opened, it contained nothing but books and toilet paper.

  The cryptocurrency market attracts countless con artists, and their favorite way to advertise is on social media. They almost always promise a guaranteed return in any investment made. In truth, no one can guarantee a profitable investment. This goes for investments in traditional financial markets as well. Anyone who says they can, is just selling you a bill of goods.

  Cryptocurrency should only be invested in if you’re familiar with the cryptocurrency market. Even then, as with most investments, you should only invest what you can afford to lose. Otherwise, you’re just gambling to pay the bills.

   
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  Geebo 8:00 am on September 27, 2022 Permalink | Reply
  Tags: bitcoin ( 31 ), Cash App ( 42 ), cryptocurrency ( 50 ), investment scams, romance scam ( 70 ), Scams ( 1,354 )   

  Loneliness leads to crypto scam 

  

  By Greg Collier

  Loneliness is one of the greatest vulnerabilities someone can have. It can cause us to make rash decisions or ignore warning signs if we think it will help us be any less alone. Some of the more detrimental decisions people can make are made during bouts of extreme loneliness. Unfortunately, scammers are aware of this too. Lonely people, especially senior citizens who may have lost a partner, are a favorite target of scammers. This is especially true of romance scammers.

  Traditionally, romance scammers find a target online and foster a phony relationship with them. Once the scammer gains the target’s trust, the scammer will start asking for money for some emergency. Romance scammers often pose as military members serving overseas, oil rig workers who are constantly working offshore, or international business people. They use these occupations as excuses as to why they can never meet in public.

  However, there is a new type of romance scam that works a lot quicker than the typical one, as one man from Indiana recently found out. The man is a senior citizen who is on a fixed income. He met a woman going by the name of Elizabeth on a dating site. It wasn’t long before Elizabeth mentioned she worked for an investment company and could make the man some money. The man was told that if he gave her $500 in Bitcoin, he’d make a profit in 5 days. He sent ‘Elizabeth’ the $500 in Bitcoin.

  When it came time for the man to claim his profits, he contacted the supposed investment company. He was told that his initial investment had multiplied more than ten times its amount. When the man tried to cash out, he was told he would need to send an additional $2000 through Cash App to claim his windfall. The man refused and was then asked for his bank account information. It was at this point the man realized he had been scammed. This man probably got off easy, relatively speaking. While we’re sure $500 was a lot of money to this man, other victims to this scam have paid the additional fees the scammers have asked for and never see a penny of it in return.

  No investment is ever guaranteed to return a profit, and especially not cryptocurrency, as that market can wildly fluctuate. If someone you don’t know or barely know promises to invest in cryptocurrency for you, there’s a good chance that they’re trying to scam you. Also, no legitimate investment company will ask you to make any payment through apps like Cash App.

  If you’re lonely and looking for companionship online, please be very careful as there are any number of pitfalls out there that could leave you with a broken heart and an empty wallet.

   
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  Geebo 9:00 am on March 10, 2022 Permalink | Reply
  Tags: bitcoin ( 31 ), cryptocurrency ( 50 ), Ethereum, investment scams, Scams ( 1,354 )   

  Cryptocurrency scams are riskier than ever 

  

  By Greg Collier

  Even though it’s risen in popularity within the past few years, cryptocurrency has actually been around for over a decade. The first and most well-known cryptocurrency is Bitcoin, which was first made public in 2009. Others such as Ethereum have also risen to prominence in that time. These are virtual currencies which have no centralized regulatory body. Cryptocurrencies are started with a built-in scarcity in mind, meaning there can only ever be a limited number of ‘coins’. The way these coins are mined is by computers solving complex mathematical equations. While someone can technically mine for cryptocurrency on their laptop, professional miners use large banks of computers with above-average processing power.

  While the idea of cryptocurrency may seem sound on paper, due to its virtual nature, it’s susceptible to all sorts of scams. It seems like on an almost weekly basis, there are tabloid-like headlines recounting hacks, heists, and schemes that have cost crypto investors millions. But we’re here to discuss the average consumer who have also been affected by cryptocurrency scams.

  The Better Business Bureau recently issued a report that said cryptocurrency scams were the 2nd riskiest scam for Americans in 2021. In 2020, cryptocurrency scams were only the 7th riskiest according to the BBB. The average consumer/investor typically does not have the time or the computing power to start mining. Instead, they’ll try to purchase cryptocurrency from someone else. These are usually done on marketplaces called exchanges. There are many legitimate exchanges, but there are also a number of fraudulent ones.

  The most common cryptocurrency investment scam involves these fraudulent exchanges. An investor will be promised a guaranteed return on their investment. Except, when the investor tries to cash out, they’ll be told by the exchange that the investor needs to pay a tax or security fee to the exchange. This is often an exorbitant amount that makes the investment not worth it. 66% of people targeted in this scam have lost money.

  Like with traditional investments, you should always do your research before committing any money to cryptocurrency. Don’t take any cryptocurrency advice from people you meet online, as they’re often part of the scam. Even friends who message you about investing in cryptocurrency could have had their social media accounts hacked. And the most important advice for any investment is never invest money that you can’t afford to lose.

   
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  Geebo 9:00 am on January 11, 2022 Permalink | Reply
  Tags: advance fee scam ( 44 ), apartment fire, austin ( 4 ), Bronx, charity scam ( 34 ), cryptocurrency ( 50 ), Houston ( 9 ), investment scams, parking scam ( 2 ), qr codes ( 7 ), san antonio, Scams ( 1,354 ), texas ( 22 )   

  Scam Round Up: QR Codes, Bitcoin, and More 

  

  By Greg Collier

  It’s time once again to bring you three scams from around the country you should be aware of.

  ***

  Major cities in Texas like Houston, Austin, and San Antonio have reported a scam involving QR codes and parking. For those who may not know, QR codes are those square codes you sometimes see. If you point your phone’s camera at a QR code, it will take you to a website where you would normally be provided with additional information. In Texas’ case, scammers around these cities are placing QR codes around city-owned parking spaces. Once you scan the code, you’re asked to pay to use the parking spot. However, the money is going to scammers instead of the city. Along with your payment, the scammers now have your payment information as well. If you have fallen to this scam, you’re asked to file a police report and contact your payment issuer.

  ***

  Cryptocurrency scams continue to find victims across the country. Recently, a North Carolina man lost $15,000 to one of these scams. He was contacted through social media to invest in a cryptocurrency company who claimed that profits were 100% guaranteed. Supposedly, the man’s initial investment grew to $95,000; however, he would need to pay another $14,000 to get his windfall. This is a new crypto-flavored twist on the advance fee scam. For example, when a scammer tries to tell you that you’ve won millions of dollars in a sweepstakes, but you need to pay a fee to claim your winnings. Please keep in mind that the crypto market is filled with scammers, and no investment, not even cryptocurrency, can guarantee you a return on your investment.

  ***

  Lastly, we have to talk about charity scams again. We’re sure most of our readers have heard about the tragic apartment fire that took place in The Bronx recently. The fire has left several families displaced and many in the hospital fighting for their lives. You may feel the need to donate to a charity that would benefit these families. Be careful because scammers will use any tragedy to try to benefit themselves. The Mayor’s Office has set up a donation fund where all proceeds go to help the victims. There is also another city website where you can find additional information on how to help the victims. Don’t make a donation through a robocal. If you’re suspicious about a certain charity, you can always check with the BBB to see how legitimate they are.

  ***

  While these scams may not be happening in your area, they could be soon. Hopefully, you now have the knowledge to recognize these scams.

   
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  Geebo 8:00 am on April 16, 2020 Permalink | Reply
  Tags: coronavirus ( 40 ), covid-19 ( 48 ), cryptocurrency ( 50 ), economic impact payment ( 21 ), economic relief checks ( 14 ), investment scams, Scams ( 1,354 )   

  Federal agencies are warning about covid related scams 

  

  With the current coronavirus pandemic showing no signs of subsiding any time soon, many experts in the field are saying that they’ve never seen so many scammers trying to take advantage of a calamity. In that vein, many federal agencies have issued warnings about scams that are related to the coronavirus/covid-19 pandemic. You can click the following link to see our previous posts about coronavirus scams.

  The Securities and Exchange Commission (SEC) is warning investors about companies that appear to be making false claims about coronavirus treatment and prevention. The SEC has already suspended 16 companies from trading stock over claims of coronavirus testing kits. The SEC is also warning about currently investing in penny stocks related to coronavirus treatment as these stocks can easily be overinflated in value by the company before being sold off in what’s known as a pump and dump scheme.

  The Secret Service is warning citizens about scams related to the economic impact payments. We’ve previously discussed many of these scams here. In addition to the scams we’ve previously discussed, the Secret Service is warning about any messages you may receive about the economic impact payment that contain phrases like ‘immediately’, ‘urgent’, or ‘do not tell anyone about this offer’. According to the Secret Service, these are red flags for scams. They also recommend possibly freezing your credit during the pandemic so no one can open any lines of credit in your name.

  Along these same financial lines, the FBI is expecting a sharp rise in cryptocurrency scams during the pandemic. These scams will essentially entail current scams such as work at home and charity scams but will be looking to cryptocurrency as the scammer’s method of laundering the money they take from their victims. The FBI also says to be wary of new cryptocurrency offerings and investments as scammers will just steal the money and hide it in other cryptocurrencies.

  During these times financial stability is a major concern among many of us. By keeping a cool head on your shoulders you can prevent these con artists from threatening the security that you’ve worked hard for.