Beware of Crypto Scammers on Chat Apps, South Korean Police Warn

South Korea is one of the most active and vibrant markets for cryptocurrency trading and investing. However, this also attracts a lot of fraudsters who prey on unsuspecting and inexperienced users. The police in Sejong, a city in central South Korea, have recently issued a warning about the rise of crypto scams on chat apps such as Telegram and KakaoTalk.

How do the scammers operate?

According to the police, the scammers create fake or exaggerated advertisements on YouTube, promising high returns and guaranteed profits from crypto investments. They lure the viewers to join their chat rooms on Telegram or KakaoTalk, where they claim to offer expert advice and tips on crypto trading. These chat rooms are often called “reading rooms” in South Korea, as they are supposed to provide valuable information and insights.

However, these chat rooms are nothing but traps. The scammers charge a fee for joining their VIP member rooms, where they ask the users to deposit large amounts of money on unlicensed and shady crypto exchanges. They reassure the users that they will soon see huge profits, but in reality, they either disappear with the money or refuse to return it.

The police said that they have received about 20 reports from victims in Sejong, who have lost millions of won to these scammers. The police suspect that there are more victims across the country, as the scammers target users from different regions and backgrounds.

What are the signs of a crypto scam?

The police advised the public to be cautious and vigilant when dealing with crypto-related offers and invitations on chat apps. They said that there are some common signs that indicate a possible scam, such as:

• Promises of unrealistic and guaranteed returns, such as 500% or more on the initial investment.
• Pressure to join VIP member rooms or pay fees for exclusive access to information and services.
• Requests to deposit money on unfamiliar or unregulated crypto exchanges or wallets.
• Lack of transparency and accountability, such as hiding the identity and credentials of the operators or moderators of the chat rooms.
• Use of aggressive or manipulative tactics, such as creating a sense of urgency or scarcity, or exploiting the fear of missing out (FOMO).

The police also reminded the public that there is no such thing as a risk-free or foolproof investment, especially in the volatile and unpredictable crypto market. They urged the users to always do their own research and due diligence before making any financial decisions, and to report any suspicious or fraudulent activities to the authorities.

How to protect yourself from crypto scams?

In addition to the police’s advice, here are some more tips on how to protect yourself from crypto scams on chat apps:

• Do not trust anyone who contacts you unsolicited or randomly on chat apps, especially if they claim to be experts or influencers in the crypto space.
• Do not click on any links or attachments that are sent to you by strangers or unknown sources, as they may contain malware or phishing attempts.
• Do not share your personal or financial information, such as your name, address, phone number, email, bank account, or crypto wallet details, with anyone you do not know or trust.
• Do not send or receive money or crypto to or from anyone you do not know or trust, especially if they ask you to do so in a hurry or under pressure.
• Do not invest more than you can afford to lose, and always diversify your portfolio and manage your risk.
• Do not rely on testimonials or reviews that are posted on social media or chat apps, as they may be fake or paid for.
• Do not fall for the hype or FOMO, and always think critically and rationally before making any investment decisions.
• Do not hesitate to ask questions and seek clarification from the people you are dealing with, and verify their identity and reputation from independent and reliable sources.
• Do not be afraid to say no or walk away from any offer or invitation that seems too good to be true, or that makes you feel uncomfortable or uneasy.