Recent data from the Federal Revenue Service of Brazil indicates that millions of Brazilian individuals are investing in cryptocurrencies, while scams are emerging to try to attack these investors, warns a recent ESET study shared with the livecoins. In addition to a record number of PF investors, CNPJs that invest in cryptocurrencies in Brazil have also recorded a record in recent months, according to the Revenue. As this is a new market, it is therefore important to remain vigilant for promises that arise, especially when they are of “promising new currencies”.
ESET warns of scams that want to capture Brazilians who invest in cryptocurrencies
With more than 1.3 million Brazilians investing in cryptocurrencies, criminals have started creating fraud schemes to profit from these people. Far beyond the old financial pyramid, other scams that may be practiced against Brazilians are the Exit Scam, says ESET, which occurs when criminals run away with victims’ money. Most of the time, it all starts when a fake investment fund or Initial Coin Offering is offered to attract investors. These are scams that seek to act quickly, since after receiving the cryptocurrencies from customers, criminals close operations and flee. According to the study, the promise of big profits is the main strategy of swindlers.
“What is sought in this type of scam is to create a fake crypto asset project with some feature that makes it attractive in the market, such as high profitability. In this way, scammers try to convey confidence so that people decide to invest in the project, but what they don’t know is that the real intention is to steal all the investors’ money, without leaving any traces that allow them to be identified.”
How to avoid being the next victim? See 5 ways to check before trusting
As the reality of scams grows in the country, digital security experts urge Brazilians to take special care when faced with investments in cryptocurrencies. The first point of attention is when investments with exorbitant profitability are offered, with great returns in the short term. These are the main reasons investors lose their money. Another point to be carried out is research on the project, investigation of the team that works on it, which can be fundamental to avoid fraud. Evaluating the investment firm’s working model is another strategy that can guarantee security, says ESET, which warns that companies’ documentation must be transparent and logical. In this way, reading the White Paper is a fundamental step when entering the cryptocurrency market, as these are the technical documents that underlie any project.
“Materials that are inconsistent and don’t offer a good theoretical framework are likely to be a fraud.”
Taking care of influencers, sponsored posts on social networks, are other important precautions to avoid falling into scams, since to be successful, scammers need to publicize the schemes before profiting. According to the study, “That is why it is so important to doubt first and then be cautious and analyze each of the points mentioned“.
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