• A campaign was launched by several European countries and Latin America to keep cryptomarket users away from cybercriminals.
• Scams involving cryptocurrencies have been increasing all over the globe and Chile is no exception. As digital currency grows, so does the risk of being scammed.
• To take advantage of victims, cybercriminals employ at least six kinds of scams.

In Chile, cybercrime has increased in the wake of South America’s rapid adoption of cryptocurrency in the last few years. Last year, the Investigative Police (PDI), registered 79 criminal cases related to this crime. 53% of these are fraud using digital currencies.

The use of cryptocurrencies as safe-havens against inflation and investment tools, or to exchange currencies, is a common practice. They offer relief for many people who are not banked or receive foreign remittances.

The authorities noticed an increase in fake companies, which use various techniques to fool investors and users.

Research from blockchain data platform Chainalysis found that cryptocurrency-related fraud and theft rose 81% globally in 2021. Latin America is home to some of the most prominent cases.

Cybercrime: An exponential increase

The total loss from cryptocurrency crime was $14 billion. This is almost twice the amount recorded for 2020 when it reached $7.8 billion.

Crypto theft and frauds have been made easier by the lack of regulations in Chile and other nations. However, the Chilean police and prosecutor’s office joined their peers in 17 other Latin American and European countries to launch the “FakeCoins: cryptocurrency scams” campaign.

The campaign aims to warn users about potential risks associated with trading cryptocurrencies if they aren’t taken into consideration.

El Mercurio was told by Luis Orellana (Deputy Prefect), that Cybercrime was one of the most recent and serious crimes on the rise.
Orellana reported that one of the main problems detected is people’s lack of knowledge about the use and operation of cryptocurrencies.

“Then, they consider that a network to create a campaign against the illicit usage of cryptocurrency that is, that’s, explaining that there are some modalities that prevent them from becoming victims of a criminal,” he stated.
Thefts and frauds with crypto assets “are repeated in the 17 countries and in the same modalities,” he said. He explained in this context that the campaign’s first phase will be focused on prevention and education to stop people becoming victims of such crimes.

Principal Forms Of Scam

“FakeCoins” has identified at least six main methods used by cybercriminals to defraud users. WebCoin is the fake use of web pages that offer cryptocurrency selling and buying services.

AppCoin uses fake accounts in well-known apps to pretend that they are exchanges. This fraudulent application, which simulates investment portfolios, is designed to collect the bank details and account numbers of victims.

There is also the LoverCoin. This type of Romeo catches victims and makes them fall for each other via street or social networking. The victim is then seduced by the individual who proposes investing in other cryptocurrency.

CelebriCoin can also be advertised through social media. The victim is asked to register in fraudulent networks or give their bank details.

MailCoin, which appears in your email inbox, is another option. These spam messages ask you to renew your password and provide investment opportunities with quick returns. You can also earn rewards by recommending people you know.

The classic Ponzi scheme PiramiCoin, or the PiramiCoin, offers great profits as well as rewards for joining the network. It is among the most common methods to deceive people.

Orellana claims that these types of fraud may be related. The WebCoin is a fake website, however CelebriCoin is also used by stars to redirect you to a fake site.

What You Need to Care About

• The problem for cybercrime specialists is not the cryptocurrencies but the ignorance of many about crypto markets.

We aren’t criminalizing cryptocurrency, but we don’t say that they should be illegal to purchase. He clarified that what we meant was to say is, “If you’re going to invest make sure you do so calmly.”

EMAIL NEWSLETTER

You can also join the crypto-verse

Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.

[contact-form-7]
With just one click, you can unsubscribe at any time.

Continue reading on DailyCoin