The FBI (Federal Bureau of Investigation) recently warned that, due to the fear and uncertainty during the coronavirus outbreak, fraudsters are attempting to steal money through various means. The next step is to launder the stolen money through a complex cryptocurrency network. It is important to understand that, crypto frauds are not limited to the USA, other nations face similar problems though the modus operandi could differ.
This warning is extended to people of all ages, especially the elderly, who are being targeted by cryptocurrency related schemes. The threat is considered to be incredibly dangerous, opportunistic and universal. It is further compounded by the increasing number of merchants accepting cryptocurrency as a mode of payment.
Some of the potential scams to watch out for include; work at home opportunities and asking for donations by phone or email to help coronavirus victims. Posing as suppliers, scammers also offer to sell safety equipment or PPE (personal protective equipment), outside of traditional e commerce channels – products are never delivered once payment is made. All of these scams accept payments through cryptocurrency - this is a red flag. It is advised to verify vendors and charities before making any payments. Additionally authorities advice that, bank account information should not be provided to receive ‘donation’ funds, without a thorough check.
Too good to be true investment scams, related to a cryptocurrency including initial coin offerings (ICO) are warned of. These types of scams offer large monetary returns with a small short term investment, and should also be avoided. Criminals take the money and hide the destination of funds – making them untraceable.
More traditional blackmail may also be attempted with a potential scammer claiming to know a “dirty secret”. There is also a new twist on blackmail, with the blackmailer threatening to “infect you and/or your family” with coronavirus, unless a payment to a crypto wallet is received. In either of these situations, or in the case of any extortion, local law enforcement or the FBI should be notified.
There have always been attempts to defraud whenever, financial transactions were involved – the emergence of crypto currency has added a new dimension to that threat. Innocent citizens will need to stay updated with these threats.
GLITZKOIN: Glitzkoin is developed on the Stellar blockchain. The project includes the multifaceted GTN token that currently trades actively on 3 crypto exchanges (Cointiger, Stellarport and Dobitrade). Glitzkoin makes a direct connect to the multibillion dollar diamond industry. The project is promoted by second generation diamond veteran Navneet Goenka, it aims to improve productivity and market scope for the glittering industry. A comprehensive diamond trading platform (DiaEx) is part of the project, it supports both B2B and B2C trade in diamonds. As mentioned above GTN is traded by crypto traders on three exchanges, it is also designated as the mode of payment on DiaEx.