SEC Issues Urgent Warning on Cryptocurrency Fraud

[TomPluz]

~
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.
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.

[Pirate]

It's clear that where there's big money, scammers follow. According to this law firm, 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.

[Bobcrypto]

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.

[Z-tight]

It's clear that where there's big money, scammers follow. According to this law firm, 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.

[bitterguy28]

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

[Bobcrypto]

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.

[Z-tight]

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.

[KingsDen]

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.

[NotATether]

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.

[Rruchi man]

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.

[Jating]

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. 

[Gposas]

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...

[NotATether]

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.

[Hatchy]

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.

[Bobcrypto]

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.