SEC Warns Crypto Investors of Scammers Exploiting Their Fear of Missing Out on Social Media

The U.S. Securities and Exchange Commission (SEC) has warned astir scammers exploiting investors’ fearfulness of missing retired (FOMO) connected societal media. “If a crypto concern ‘opportunity’ sounds excessively bully to beryllium true, it astir apt is,” the SEC cautioned.

SEC Says Scammers Often Use Social Media to Defraud Investors

The U.S. Securities and Exchange Commission (SEC) published an Investor Alert titled “Social Media and Investment Fraud” Monday.

The SEC’s Office of Investor Education and Advocacy warned that “fraudsters often usage societal media to scam investors.” Encouraging investors to beryllium skeptical and “never marque concern decisions based solely connected accusation from societal media platforms oregon apps,” the securities regulator described:

Fraudsters whitethorn exploit investors’ fearfulness of missing retired to lure investors connected societal media into ‘crypto’ concern scams.

“If a crypto concern ‘opportunity’ sounds excessively bully to beryllium true, it astir apt is,” the SEC stressed. “Promises of precocious concern returns, with small oregon nary risk, are classical informing signs of fraud.”

Fraudsters whitethorn besides station fabricated humanities returns connected their websites showing precocious concern returns arsenic a mode to lure investors into their schemes.

Anyone considering investing successful crypto assets oregon immoderate crypto-related investments should “take the clip to recognize however the concern works,” the securities watchdog advised. “Check retired the inheritance (including licence and registration status) of anyone offering you an concern successful securities utilizing the hunt instrumentality connected Investor.gov.”

Besides the SEC, respective different U.S. regulators person warned astir cryptocurrency scams. Recently, authorities warned of the “pig butchering” cryptocurrency scam becoming alarmingly popular. The Federal Bureau of Investigation (FBI) besides precocious cautioned crypto investors not to autumn for the liquidity mining scam.

According to blockchain analytics steadfast Chainalysis, illicit crypto volumes were down 15% successful the archetypal six months of this year, compared to the erstwhile year. Specifically, “Total scam gross for 2022 presently sits astatine $1.6 billion, 65% little than wherever it was done the extremity of July successful 2021, and this diminution appears linked to declining prices crossed antithetic currencies,” the steadfast noted.

What bash you deliberation astir the crypto concern scam informing by the SEC? Let america cognize successful the comments conception below.