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Learning & News => News related to Crypto => Topic started by: TomPluz on May 30, 2024, 06:01:40 AM

Title: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: TomPluz on May 30, 2024, 06:01:40 AM


(https://azc.news/wp-content/uploads/2024/05/AZCNews-SEC-Issues-Urgent-Warning-on-Cryptocurrency-Fraud.webp)

More of this news here! (https://azc.news/sec-issues-urgent-warning-on-cryptocurrency-fraud-id22551/)


Quote
The U.S. Securities and Exchange Commission (SEC) issued a warning to cryptocurrency investors. The SEC stated that fraudsters tend to exploit advanced investment technologies to perpetrate fraudulent investment activities.

These fraudsters specifically aim to capitalize on the hype surrounding artificial intelligence (AI) technology to lure potential victims. They may use common enticing words to advertise their fraudulent activities.

Moreover, these bad actors may also rely on advanced AI technology to impersonate their identities. The rapid development of AI has made it much easier for fraudsters to impersonate government agencies as well as prominent individuals (such as Ripple CEO Brad Garlinghouse).

SEC also cautioned about pump-and-dump schemes related to digital assets. This warning comes amid the increasing popularity of meme coins, with many celebrities jumping on the latest cryptocurrency craze by launching their own tokens.


We have to admit the fact that one of the big blackeyes with the cryptocurrency industry is the ever presence of scammers and fraudsters all just waiting for anyone that can be lured with their laid traps all over the place. And this has been true right from the very beginning of cryptocurrency's history...and it is because here there is really that potential to make big money with seemingly global reach as if one can be printing money out of thin air.

Can there be things we can do as individual cryptocurrency supporters to help in limiting the reach of these ever adaptive and enticing scams? Or should we resigned to accept that this is already a normal way of life in this industry?


Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: ABCbits on May 30, 2024, 12:07:21 PM
The warning makes sense, although it's nothing new or unique with exception of using AI to impersonate someone.

Can there be things we can do as individual cryptocurrency supporters to help in limiting the reach of these ever adaptive and enticing scams? Or should we resigned to accept that this is already a normal way of life in this industry?

Even with cautious or warning message by public figure or government, few people keep falling to such scam. So aside from reminding other people what they've heard before, i don't know other effective ways to prevent someone got scammed.
Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: NotATether on May 30, 2024, 12:35:44 PM
Anybody, and I mean absolutely anybody, who sees a crypto project using a bunch of AI buzzwords and chooses to invest in it anyway, is a dummy.

Most of the developers are not even AI specialists themselves. There is a world of difference between being able to program a token, blockchain and smart contract, and being able to create a machine learning model. What makes people think that they are even remotely similar things?
Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: yhiaali3 on May 30, 2024, 09:59:19 PM
Unfortunately, this is absolutely true, and this is a very painful truth. This space is incredibly full of scammers.

The main problem is greed. Greed is a basic human instinct and scammers know this well and take advantage of this bad human nature by using buzzwords that make greedy people salivate and easily fall into the trap.

Unfortunately, we cannot do anything to prevent this except spreading warnings and trying to increase knowledge, especially among beginners. This is the only method I know of, otherwise I cannot find a useful method.
Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: Zed0X on May 30, 2024, 10:38:33 PM
Can there be things we can do as individual cryptocurrency supporters to help in limiting the reach of these ever adaptive and enticing scams? Or should we resigned to accept that this is already a normal way of life in this industry?
There's always a way to help no matter how small or insignificant the effort is. I get some private messages sometimes asking me what I think about a certain project or a trading platform and give my 2 cents. I find most of these projects referred to me as fishy/shady and so maybe I was able to help some of them avoid losing their money.

As to acceptance, yeah, scams are everywhere and we cannot help everyone. Let their own experience teach them a hard lesson.
Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: Captain Corporate on May 31, 2024, 12:21:24 AM
To be fair, they are not really wrong. Look at any low level launchpad and you are going to see people who did not spend even a single dollar on shitty projects, hell not even have a .com website, something like .xyz website which is almost free, and could be gotten as a gift for a new membership or something and they end up trying to get funding from people. You are all aware that they are scams, and some of them still get funding, no idea how they do that. A situation like this does require a warning, go ahead and invest into bitcoin at trusted sources and you should be fine, but if you risk for more, you will get less.
Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: LogitechMouse on May 31, 2024, 04:04:39 AM
~
Can there be things we can do as individual cryptocurrency supporters to help in limiting the reach of these ever adaptive and enticing scams? Or should we resigned to accept that this is already a normal way of life in this industry?
Warnings, advice, tips, guides.
I guess that's what we can do to at least decrease the number of scams that are happening around the crypto space.

To eradicate it? It will not happen, and it already came to a point where scam is being treated as a normal thing that are happening with anything that involves investing (at least that's what I see). I said it because whatever we do, there will always be people that will get scammed. There will always people who are gullible enough to fall into even the most common ways of scamming. There will always be people that will not listen to warnings and will end up regretting it. There will always be people who are willing to risk their money even though they know that the chances of it being a scam project is very high.

It's good that authorities like SEC are giving warnings to different investors, and with AI being used by every much person around the world that has access to it, it's no surprise that scammers will also take advantage of it as well.
Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: robelneo on May 31, 2024, 02:47:32 PM
There will always be bad actors in the Cryptocurrency industry just like in all other industries but the number is so huge and the bad actors are good at doing their things that even those good at doing research fall to these bad actors.

But the only way to combat these bad actors and their dirty deeds is to moderate our greeds, these scammers thrive on investors greed to make profit, if we are too greedy we tend to forget the best practice in researching the right project to invest.
Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: Stompix on May 31, 2024, 03:04:46 PM
Can there be things we can do as individual cryptocurrency supporters to help in limiting the reach of these ever adaptive and enticing scams? Or should we resigned to accept that this is already a normal way of life in this industry?

No!
And worse than that is that some people don't want the limitations on these, if only good coins with true companies behind it, respecting every step of their roadmap would be allowed to launch a tardeable coin everyone would grab a pitchfork and shout the government is against crypto!
The "shut up and take my money" meme is the representation of the majority involved in crypto, the greed is overflowing, everyone sees money and value in every piece of garbage so you won't be able to do anything at this point! It's done for!
Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: Aanuoluwatofunmi on May 31, 2024, 05:47:49 PM
We cant denied the fact that scam happens in cryptocurrency, but how has this impact affected their own policies and regulations over the economy, i believe to an extent, its not everyone having their money with them were being accounted for on how they have generated the use of the money, in which we should also realized the more needs why we should go for having our financial privacy with the use of bitcoin since government cannot secure that for us, everyone should guide his asset in other not be experience fraud.
Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: Faisal2202 on May 31, 2024, 07:04:07 PM
I think its already a normal thing and has become a part of our life. The world is full of good and bad actors, it can't be full of only one. Diversity plays an important role here. So considering this I would say accepting the fact is obvious but not the solution. We could spread awareness about these scams. For example, these scammers pretend as a girl when they talk with you over social media, and after spending a long time chatting with you.

They will start the conversation about investing etc. and you already talking to her and trusting here, so you will definitely trust all of her words about investments as well. Even you will send your funds to them. Results in losing it as after they receive it, they will block you. So we can spread awareness to old and new users around us so they would save themselves from such actors. We can't force them but just tell them, after that its there decision.
Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: Baofeng on June 05, 2024, 10:41:13 PM
I don't know but crypto enthusiast should be accepting the fact as early that there are a lot of criminals in this space an they really have to know how to practice security and safety hygiene first before they should invest.

This is the reality of it, so it's either you tackle it and work your way and learn everything or experience it first hand before you learn the hard truth. SEC can give as many warnings to potential investors, but still the burden is still on our side here and I will say that we shouldn't blame the market if ever we lost our crypto to scammers. Due diligence is needed.
Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: Z-tight on June 05, 2024, 11:49:59 PM
Can there be things we can do as individual cryptocurrency supporters to help in limiting the reach of these ever adaptive and enticing scams? Or should we resigned to accept that this is already a normal way of life in this industry?
You can only help to educate the people around you or people you know about how these scammers operate, there are a lot of articles online and crypto forums that people can join and learn how to protect their funds from scammers. I believe that for someone who owns crypto, they should try and stay updated on all possible ways to avoid losing their coins to scammers.

However, it is important to point out that there are scammers in every industry, there are a lot of scammers stealing fiat currencies from people regularly too, so sometimes the media tries to attack crypto with unending reports of crypto scams.
Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: LogitechMouse on June 06, 2024, 02:14:51 AM
~
This is the reality of it, so it's either you tackle it and work your way and learn everything or experience it first hand before you learn the hard truth. SEC can give as many warnings to potential investors, but still the burden is still on our side here and I will say that we shouldn't blame the market if ever we lost our crypto to scammers. Due diligence is needed.
SEC can give many warnings to us, but the reality is, like GameFi, Memecoins, and others, SCAMMERS ARE HERE TO STAY. :D
That's the reality of investing and whatever happens, there will always be investors that will fall, and lost their money due to scams.

Well, at least the SEC is giving constant warnings and advice to the investors. I mean that warning might help 1 or 2 investors or even more with their decision making, and at least they will be less ignorant because of that. Like what you said, the burden is still on us hence, we need to make constant research on everything, and before investing, we should at least be knowledgeable on the thing that we are investing in. :)
Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: bitterguy28 on June 06, 2024, 03:34:48 AM


(https://azc.news/wp-content/uploads/2024/05/AZCNews-SEC-Issues-Urgent-Warning-on-Cryptocurrency-Fraud.webp)

This will be very helpful if the SEC can name names those fraud crypto exchange and other forms of fraudulent groups and teams so the people will take a distance as we knew
how good those BS hiding themselves as a Sheep pretending to be but wolves .

hope that they will extend their hands in directly to help us crypto users/investors .
Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: TomPluz on June 06, 2024, 03:45:36 AM
~
This is the reality of it, so it's either you tackle it and work your way and learn everything or experience it first hand before you learn the hard truth. SEC can give as many warnings to potential investors, but still the burden is still on our side here and I will say that we shouldn't blame the market if ever we lost our crypto to scammers. Due diligence is needed.
SEC can give many warnings to us, but the reality is, like GameFi, Memecoins, and others, SCAMMERS ARE HERE TO STAY. :D
That's the reality of investing and whatever happens, there will always be investors that will fall, and lost their money due to scams.

I now accept the fact that because of the global potential of the cryptocurrency industry with its expanding market, it will always be attracting scammers and fraudsters to pretend like they are the real ones when in fact they are here just to make some money and nothing more...and of course it could mean that there will always be victims as these scammers already understand how to appeal to the greediness of human nature. What we could do is to never be one of the statistics and maybe warn others of not participating in new projects with so many red flags shown though admittedly it can really be so hard to determine which of them will just go away.

Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: Pirate on March 11, 2025, 11:18:52 PM
It's clear that where there's big money, scammers follow. According to this law firm (https://federal-lawyer.com/whistleblower-lawyers/sec/rewards/), crypto fraud is a serious issue, and the SEC constantly warns about risks like pump-and-dump schemes and the use of AI for scams.
Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: Bobcrypto on March 16, 2025, 08:22:27 PM
The warning makes sense, although it's nothing new or unique with exception of using AI to impersonate someone.

Can there be things we can do as individual cryptocurrency supporters to help in limiting the reach of these ever adaptive and enticing scams? Or should we resigned to accept that this is already a normal way of life in this industry?

Even with cautious or warning message by public figure or government, few people keep falling to such scam. So aside from reminding other people what they've heard before, i don't know other effective ways to prevent someone got scammed.

The most disappointing area on this developments is that only few of the victims are interested on getting informations, unfortunately, many of the investors do not pay attention on the happening about the crypto economy, or even sort for informations.
It is known fact many investors do not listen or read news about the happening on the crypto space, and some of them have no knowledge and experience before investing.
In my opinion many victims of crypto scams are mostly newbies who do not care to learn, they jump into investing without knowledge and ended up being frustrated by these scammers. The sooner some of these investors listen, or try to learn, the better for their progress.
Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: Z-tight on March 16, 2025, 11:43:48 PM
It's clear that where there's big money, scammers follow. According to this law firm (https://federal-lawyer.com/whistleblower-lawyers/sec/rewards/), crypto fraud is a serious issue, and the SEC constantly warns about risks like pump-and-dump schemes and the use of AI for scams.
While there is fraud everywhere and people also use other tools other than crypto to scam, it is true that scammers are taking advantage of people through crypto. Sec's warnings does not change anything, people simply have to learn and educate themselves on how to secure their funds and not fall victim to cheap tricks.
Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: bitterguy28 on March 18, 2025, 05:44:00 AM
While there is fraud everywhere and people also use other tools other than crypto to scam, it is true that scammers are taking advantage of people through crypto.
it is because crypto is now one of the most profitable and most popular industries in the world scams and frauds happen in almost every industry because where money is is where the criminals go to to find their next victim in short this is the current trend that a lot of scammers want to jump in on and it might just increase over time but we should also just be smarter than them over time that is the only way we can avoid such scams and fraud
Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: Bobcrypto on March 18, 2025, 07:09:54 AM
There will always be bad actors in the Cryptocurrency industry just like in all other industries but the number is so huge and the bad actors are good at doing their things that even those good at doing research fall to these bad actors.

But the only way to combat these bad actors and their dirty deeds is to moderate our greeds, these scammers thrive on investors greed to make profit, if we are too greedy we tend to forget the best practice in researching the right project to invest.

Yes, greediness is a factor that has lead to many investors into the hands of scammers, and not until they do way with greed, most investors will continue to be a victim of scammers who are always there to do their things.
in addition, one of the ways to be free from scams is to completely avoid phishing websites, calls/sms from unknown persons, social network interactions. Let be proactive while trading, and always learn from those that had similar experiences.
Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: Z-tight on March 18, 2025, 03:23:39 PM
one of the ways to be free from scams is to completely avoid phishing websites, calls/sms from unknown persons, social network interactions. Let be proactive while trading, and always learn from those that had similar experiences.
Yeah, it is also very important to store your funds in cold storage, that is either an airgapped wallet or a hardware wallet, because we cannot be too careful with our devices when they are online and anything online is prone to hacking. So the safer option is to only store funds for spending on the go in your online wallet.
Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: KingsDen on March 18, 2025, 07:48:42 PM
The talk of impersonating government officials using AI tools is very correct and should be concerning. The advance effect of AI is yet to storm us. I am currently finding it difficult to differentiate between real videos and AI videos of some celebrities. If this sophisticated AI softwares is targeted at government officials and used to launch some kind of meme coins, it will be so disastrous.

The government needs to train higher softwares to detect and counter the fraudulent ones, that's the solution.
Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: NotATether on March 19, 2025, 08:42:48 PM
Who bumped this?

Anyway, it is a known fact that as long as the SEC doesn't press criminal charges against the fraudsters themselves, this kind of scamming will continue for a long time.

If you're serious about fighting scammers, then lock them up in prison.
Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: Rruchi man on March 29, 2025, 02:53:39 PM
Who bumped this?
There are not so many topics to engage in, so it is normal to see old topics like this get bumped again for discussion.

If you're serious about fighting scammers, then lock them up in prison.
If a few are used as examples, others will learn surely and be discouraged from getting involved with scam.
Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: Jating on March 29, 2025, 03:06:04 PM
Who bumped this?

Anyway, it is a known fact that as long as the SEC doesn't press criminal charges against the fraudsters themselves, this kind of scamming will continue for a long time.

If you're serious about fighting scammers, then lock them up in prison.
And now the the government of Trump is supposedly pro-crypto, we might see less criminals charges being press against this fraudsters. Unless they are caught with their pants down and so it's inevitable. I'm not really sure though against criminals from different nationalist, could be "convict in absentia". As for rug pull and pump and dump scheme, we've seen it in $Trump, and so far no one has ever been charge.  ;D
Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: Gposas on March 29, 2025, 08:11:59 PM
We have to admit the fact that one of the big blackeyes with the cryptocurrency industry is the ever presence of scammers and fraudsters all just waiting for anyone that can be lured with their laid traps all over the place. And this has been true right from the very beginning of cryptocurrency's history...and it is because here there is really that potential to make big money with seemingly global reach as if one can be printing money out of thin air.

Can there be things we can do as individual cryptocurrency supporters to help in limiting the reach of these ever adaptive and enticing scams? Or should we resigned to accept that this is already a normal way of life in this industry?

It's a good news that the SEC is now at the seat of fighting against crypto scammers and fraudsters, it'll reduce the rate of scammers especially in the US both major and minor.
This would only make the scammers to sit down and demise more intelligent means to scam people, so they'll not get caught.
To me, it is obvious that crypto scams cannot be completely eliminated from the crypto industry, but this news sounds positive to help reduce their number.
As it doesn't call for the carelessness of users, because a scammer would never miss any chance...
Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: NotATether on March 29, 2025, 09:28:20 PM
To me, it is obvious that crypto scams cannot be completely eliminated from the crypto industry, but this news sounds positive to help reduce their number.
As it doesn't call for the carelessness of users, because a scammer would never miss any chance...

There will always be gullible people losing money to the dumbest things. It has happened before bitcoin, before the internet was invented, and it will keep happening for eternity.

What we can do is make it really fucking hard for the average person to successfully pull off any sort of scan, by integrating reputation-based blacklisting in all wallets.
Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: Hatchy on March 30, 2025, 02:20:35 PM
To me, it is obvious that crypto scams cannot be completely eliminated from the crypto industry, but this news sounds positive to help reduce their number.
As it doesn't call for the carelessness of users, because a scammer would never miss any chance...
Like I'll always say, the more we have new investors in the crypto market, the more chances scammers have to pull off their scheme. Many new investors will continue to come now and in the future and there's nothing that can be done about that. It's an ecosystem that is growing continuously. What can be done is to continue educate those known to us on how they can securely store their coins and avoid being victims of scam.
Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: Bobcrypto on April 02, 2025, 02:47:56 PM
I don't know but crypto enthusiast should be accepting the fact as early that there are a lot of criminals in this space an they really have to know how to practice security and safety hygiene first before they should invest.

This is the reality of it, so it's either you tackle it and work your way and learn everything or experience it first hand before you learn the hard truth. SEC can give as many warnings to potential investors, but still the burden is still on our side here and I will say that we shouldn't blame the market if ever we lost our crypto to scammers. Due diligence is needed.

Crimes on the crypto space is rising every day, and there seems to be no solutions, i have read on certain news platforms where some criminals invaded a man's house in the US demanding his crypto.

you mail read here: https://www.thescottishsun.co.uk/uncategorized/14537120/star-wars-game-of-thrones-star-loses-50000-in-cryptocurrency-scam/

The crypto economy is currently under serious security concerns, and urgent attention is needed to reduce or totally eliminate these crypto thefts. I also think crypto enthusiast has reduced public exposure, a low key appearance discussion with friends and family could be some of the safety measures in my opinion.
Title: Re: SEC Issues Urgent Warning on Cryptocurrency Fraud
Post by: Aanuoluwatofunmi on April 02, 2025, 08:31:51 PM
Why are they talking cryptocurrency scam as the first of its kind to ever happened in life, financial crime have always been right before the introduction of bitcoin, people finds it difficult to cope anymore with the tradition regulations and securities in dealing with their finances and then comes the introduction of bitcoin for them to use, the earlier the better that they realized cryptocurrency has come to stay and nothing is changing that, scam is everywhere and the purpose for creating bitcoin which was the first crypto ever was not to scam.