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Warning about investment platforms scams

We have come across a new form of scam coming from fraudsters offering investment services.

Protecting our Traders is one of Coinify’s priorities and we take an active role into making the Crypto community aware of the different scams they might encounter along the way. 

Investing and trading seem to go hand in hand when it comes to cryptocurrencies. Fraudsters have taken advantage of this to come up with new Investment Platforms Scams.

How do they operate?

  • They claim to be a broker/investment companies and to provide accounts that allow trading with different financial instruments.

  • They are the ones contacting you.

  • Then they might mention a cooperation with Coinify and ask you to sign up for a Coinify Trade account or when you buy Bitcoin to enter a Bitcoin delivery address provided by them.

  • They will explain that the coins will be sent to "your investment account".

  • You might get access to a fake dashboard showing  fake stats and " a balance" showing positive numbers for your "investments".

  • In this way, they manage to mislead you into thinking that you are making a profit, into making you order more bitcoins and entering a BTC address that they have provided you with claiming that it is yours -  to which in reality you do not have access.

  • Note that they build  very convincing front-ends to make their web sites  look like they belong to a real company.

  • Fraudster pretend to be customer support agents you can contact and they will keep the lie going until they cut the communication and disappear.

This is when you find out that you have been scammed, that your investment account with them doesn't exist and that for all the orders placed, you were sending the coins to an address someone else owns and you cannot access.

How can I prevent this from happening to me?

  • In the first place, it is important to research very thoroughly before you invest in something. If you Google write the name of the company you will get information about it shared in public forums.

  • Be suspicious about any unsolicited offers of investment and ask questions.

  • Protect yourself online by never sharing private, personal and payment information.

  • When placing an order from your Coinify Trade account, always make sure to read the information displayed on the screens showed during each step of the purchase process.

  • On the order confirmation screen, we display a message clearly stating that you are responsible for double checking the Bitcoin address you are entering is correct and that you have access to it (see screenshot below).

  • Note that Bitcoin transactions are irreversible, meaning that it is not possible to retrieve the coins once they are sent out and that we are not liable for Bitcoins sent to an address you can’t access.

This is also part of our Terms & Conditions to which you agree when confirming your order.

A Bitcoin Wallet is like a physical wallet in the sense that if you put your money in someone else's wallet or if you share it, others will have access to your funds as well and can use them without your knowledge or permission. Therefore, you should never share access to your Bitcoin wallet. Send funds only to a wallet that you have created yourself and make sure that you are the only one having access to it.

Please Note: 

  • We don't call anyone to offer our services and we don't offer investment advices.
  • If you have encountered a similar form of scams, we strongly advice you to report this to your local police authorities. On our side, we will do as much as we can to collaborate with any law enforcement investigation.

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Published Date = 17/10/2018
Last Updated Date = 30/03/2020
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