Cryptocurrency scams take many forms as crypto scammers will do anything to take your crypto. To spot a potential cryptocurrency scam, it helps to know when and how you’re being targeted. Here are a few ways AltCoinTrader protects their clients from potential crypto scams.
Former SABC radio presenter arrested in Bitcoin scam
In the latest news, a former SABC radio presenter was released on bail after being embroiled in a Bitcoin mining scam. It is alleged that former Thobela FM presenter Sebasa Mogale (52) and his wife Dorah (44) scammed about 140 people to buy mining packages varying from R6 500 to R253 000. Mogale advertised the scam named “’Mining City” on the radio channel in 2020 and promised unsuspecting listeners high returns.
In the radio advert, Mogale encouraged listeners to attend a seminar at his office in Polokwane. They were presented with various investment options as well as login details to an email address that allowed them to access their investment. However, they were told to wait for six months before they could withdraw their funds. Investors were alarmed when they could not withdraw their money and the login details were blocked. It is alleged that upon enquiry, Mogale told investors that the Mining City scheme failed due to the inflation rate. This meant that investors had lost their money. Since the incident, more than 10 case dockets have been opened at the Polokwane and Mokopane SAPS. Whilst police investigations are ongoing, more cases are expected to be opened. Both Mogale and his wife have been charged with fraud emanating from a Bitcoin scam. Appearing before the Polokwane Magistrate’s court on Friday, 15 March, both Mogale and his wife were released on bail of R10 000 each.
How to spot a cryptocurrency scam
There are two types of cryptocurrency scams:
- Scams that aim to obtain access to a trader’s digital wallet or authentication credentials.
- Schemes that entail transferring your cryptos directly into a scammer’s account.
Fortunately, there are signs to watch out for that could indicate a crypto scam:
- Poorly written white paper
- Excessive and aggressive marketing
- Get-rich-quick claims.
The crypto industry is a fast-paced with high volatility. Every week something new is happening in the crypto space. Therefore, it is important to always do your own research before investing in a new project or initiative. Find out as much as you can from a variety of sources and never invest money you can’t afford to lose. It is essential to understand the risks. As an AltCoinTrader, it is advisable to activate the Two-factor authenticator on the app to provide an extra layer of protection. AltCoinTrader staff will never contact you directly to advertise a product or ask for funds. Be sure to keep an eye on our official social media channels for regular product updates so that you don’t fall victim to phishing scams. The most important way to protect your crypto holdings is to never share your login details or private keys to participate in an investment opportunity. It’s highly likely to be a scam.