Be Careful, This is a Sign of Fraud Under the Guise of Investing Using Cryptocurrencies

Posted on

The world of investing is not as simple as depositing a certain amount of money for investment and then earning a profit within a few days.

You need to know the ins and outs of investing in cryptocurrencies first before deciding to invest so as not to lose money. Don’t let the bitter story of other people’s losses due to your crypto investment feel too.

Cryptocurrencies and forex are two types of investments that are in high demand these days. Because there are many enthusiasts, it is used as a field for some people to gain a lot of profit through illegal means such as fraud.

Like a resident in Tangerang who is a Dogecoin miner, one of the digital cryptocurrencies claimed to have suffered losses of up to billions of rupiah. After being promised a profit of 2% per day, it was not a profit, but the money actually disappeared somewhere.

The characteristics of fraudulent investments or scams that are common, you will be given the lure of getting fantastic profits but have to find new members.

The latest fraud mode is various offers of forex investment packages under the guise of selling trading robots with a member get member system or looking for new members.

The Head of the Task Force for Handling Alleged Unlawful Actions in the Field of Public Funds Collection and Investment Management or the Investment Alert Task Force, Tongam L Tobing once suggested that you check the following things so as not to be deceived when playing crypto, namely:

Make sure you know the permission

Fake cryptocurrency exchanges or traders will usually make it difficult to withdraw money after you have invested a certain amount of funds. They will usually charge high commission fees so you run the risk of losing a lot of money.

So, you should be careful and make sure your exchange is registered with a legal entity, and be wary of offering high promises with various promotions. Don’t forget to check the terms and conditions too.

See the rationale of the promised return

If you encounter the lure of 1% interest per day, then it is irrational to trade crypto futures and it is very likely that it is a scam.

There is one form of illegal crypto investment such as E-Dinar Coin (EDC) Cash which has been registered in illegal investments on the Investment Alert Task Force list since October 2020.

In the form of fraud, the victim is asked to buy coins and promised a profit of 0.5% per day or 15% per month. The 0.5% gain may be an attraction as it is not one of the hallmarks of a scam.

However, EDC Cash has no purchasing power anywhere, it is only traded in the community.

So, even the trading results are based on how the incoming membership flows, if there are no new participants, it will collapse. The scheme is called a Ponzi activity (Ponzi scheme), it is very detrimental, isn’t it?

So, don’t be immediately tempted by any investment that is unfamiliar or doesn’t understand the working scheme to avoid fraud and make sure the exchanger used is legal crypto in Indonesia.

Be careful with cloud mining

In cryptocurrency mining, there are at least two ways of mining. The first is to join other miners in a pool for mining cryptocurrencies who then share the results obtained from mining.

The second way is to buy CPU Power from a data center that has equipment for cryptocurrency mining (cloud mining).

The difference between pool mining and cloud mining is that in cloud mining, a third party owns the center. While in the mining pool, the miners or you directly own the data center along with other miners.

If, for example, the method used is cloud mining with the owner of the data center being a third party, then you need to make sure who the third party is and make sure it is registered with the Ministry of Law and Human Rights or others as evidence of legal entities or legal subjects.

Crypto investment can be safe and profitable as long as the exchange you choose is trusted, has a legal entity, and you understand how to invest in cryptocurrencies.

Likewise, with forex investment, there are lots of illegal brokers in circulation. As of May 2021 alone, CoFTRA has blocked 137 domains consisting of 117 websites, 12 Instagram accounts, and eight Facebook accounts in the field of commodity futures trading (PBK) that do not have a license from CoFTRA.

It didn’t stop there, last August, CoFTRA has also removed 249 illegal futures trading domains under the guise of forex investment and offering trading robots.

The rise of fraud requires you to be careful and vigilant in making investments, you don’t want to just lose the millions of money you’ve invested, right?.

Don’t let the fraudulent event disguised as a forex investment that has been running since 2017 with the suspect HS and was only arrested by the police in June 2021 yesterday with losses reaching 15.6 billion with a total of 53 victims happening to you.

So that you don’t fall victim to the next investment scam, one of the most important and basic things you need to pay attention to is the reputation of the brokerage or brokerage company.

Choose a company that is already registered with CoFTRA and has a legal license. Because companies that commit fraud also often take advantage of trade permits.

There are also those who show a trade license (SIUP) and a Business Identification Number which turn out to be fake or profiteering from other companies.

So, before deciding on a broker choice, first, check whether the broker is registered with CoFTRA through the CoFTRA website and make sure the company is an official forex company.

Official companies that do not commit fraud will usually provide investment learning facilities to their customers through courses or webinars.

They will also make it easy for customers to withdraw the profits they get and also provide 24-hour consulting services to ask questions about investment issues.