Boiler room fraud with cryptocurrency
Because of their complexity, cryptocurrencies are a sought-after medium for rogue individuals or organizations.
Every year, countless Belgians fall prey to cryptocurrency fraud. The number of victims is increasing exponentially.
Most scam methods have one thing in common; all are geared towards gaining your trust, and then exploiting this to take as much money from you as possible.
Fraudsters are becoming more and more resourceful, the subterfuges more and more sophisticated. This article explains one of the most common fraud methods; called boiler room or broker fraud.
You may have already seen it on social media; a well-known TV personality seems to be advertising an investment firm that can help you make huge profits by investing in crypto-currencies.
When you click on the ad you usually have to provide your contact information. You are then contacted by a person who claims to represent the service provider in question. The contact person, usually English-speaking, introduces himself as a so-called broker and seems to be very well versed in the plights of the investment markets. He or she will invest the funds you invest for you, promising you huge short-term profits.
Often, you will first need to make a small deposit for the services that the broker will provide you, after which this person will assist you with the creation of a so-called wallet on a virtual currency trading platform. In some cases, this requires the victim in question to install a program that allows the broker to remotely control the victim's computer. This already allows the scammer to extract certain sensitive data.
Usually, victims are also directed to a second, beautifully designed platform of the fraudulent company itself, on which the so-called returns on investment can be tracked.
Your initial investment, usually a smaller amount, should be forwarded to a wallet that is passed on seems to quickly generate huge profits. Sometimes the confidence is increased at the beginning by a repayment of your initial investment, which succeeds. Then you are systematically pressured to deposit more money (hence the English name boiler room). Your returns rise seemingly exponentially and close contact is maintained with the broker.
However, the problems begin when you next want to pocket your winnings.
You will most likely be notified that, due to anti-money laundering obligations, you will have to pay some sort of tax or fee, often to the extent of your now accumulated funds. If you deposit, you will usually be notified of technical problems, which prevent the withdrawal of your funds for the time being. If you refuse payment, the tone of your trusted broker often turns and contacts become less friendly.
Unfortunately, it is usually only at this point that victims realize they have been scammed.
Were you the victim of crypto fraud? Our specialized lawyers know exactly what information and evidence to provide when filing a complaint and can optimize your chances of recovering your lost money. You can contact us at info@bannister.be or by calling our phone number 03/369.28.00. Our criminal lawyers will be happy to assist you.
