Cryptocurrency scam platforms have been abundant around the world for years now. Legal authorities try their hardest to catch them as they appear, but often they are well thought out and disguised. It can be hard to distinguish the difference between real platforms and fake ones, so research is essential. Investors need to protect themselves and their digital assets, but even so, sometimes a cryptocurrency scam does happen.
XtraderFX – GPay Was Targeted for Investigation and Shut Down
This cryptocurrency scam platform was very successful in separating over $1.8 million USD from approximately 108 users around the world. One of the many deceptions of this platform was the option for users to purchase insurance to cover losses. While some illegal platforms can be easy to spot, others like this one are quite detailed in fooling investors. GPay was operating as XtraderFX (also known previously as Cryptopoint) promising an easy way to invest, trade, and make money.
Targeting beginner crypto investors or those who aren’t diverse in the cryptocurrency world, GPay advertised extensively online. Many convincing features of this cryptocurrency scam were false celebrity endorsements like Martin Lewis, the founder of MoneySavingExpert. Other notable fake testimonials posted were from famous entrepreneurs from the well-known television show Dragons’ Den.
How This Cryptocurrency Scam Worked
GPay was very convincing in enticing investors to transfer funds to their platform in order to trade within their network. Sadly, once users tried to withdraw funds from their accounts, they ran into roadblocks including providing copies of:
• Photo ID
• Utility bill
• Debit/Credit Card
Essentially, the users’ funds were lost and unable to remove from the GPay platform, causing substantial losses for many.
How Devastating Are Cryptocurrency Scams in the Market?
Many digital asset enthusiasts believe that the presence of a cryptocurrency scam has the ability to affect market prices. With the ongoing Coronavirus pandemic, many investors are falling victim to scammers more than ever before. Unfortunately, scamming platforms are designed to seek out the vulnerable and naïve and have been successful for years.
Investors need to learn how to protect themselves from such cryptocurrency scam networks by researching online and doing their homework. Often joining online cryptocurrency communities can help investors find legitimate exchange platforms and steer clear of questionable ones. Talk to other crypto enthusiasts and get a feel for what is to be expected from a legal exchange platform.
Protect Yourself and Your Investments
There are some glaring differences between cryptocurrency scam platforms and real ones. By learning what to look out for, you can minimize your risk online. Some major red flags to look out for include:
• Claims that seem too good to be true
• Very limited or no online history/data to back up this online exchange platform or service
• Promotional quality seems very poor considering the claims of success
Investors can always err on the side of caution and go with their gut feeling if something doesn’t feel right. If you need more time to decide, do the research, and ensure you are making the right decision. Sometimes making a hasty decision can be harmful to your portfolio.