Crypto Investors May Lose $3B, US FTC Believes

US watchdog representatives took part at consumer protection workshop on cryptocurrency scams
26 June 2018   752

Consumers lost $ 532 million due to crypto fraud in the first 2 months of 2018, reports CoinDesk.

Consumers will lose more than $3 billion by the end of 2018.
 

Andrew Smith

Director of Bureau of Consumer Protection, FTC

One of the main problems complicating the protection of consumers in this area is insufficient attention from investors themselves. This was pointed out by Joe Rotunda, enforcement director for the Texas State Securities Board.

Coin Center research director Peter Van Valkenburgh noted that people are victims of fraudulent schemes, such as exit-scams and pump-and-dump schemes, because they believe in proposals that are too good to be true.

I think nobody should ever buy any more cryptocurrency, put anymore [into] cryptocurrency than what they are completely willing to lose … if you are willing to participate at all. That is a message that needs to be repeated and repeated.[...] If you yourself are not capable of explaining to somebody what a token's supposed to do, you should not buy the token,. If you can't tell the wheat from the chaff, or what is techno-gibberish or actual innovation, you should not participate.
 

Peter Van Valkenburgh

Research director, Coin Center

Rotunda believes that regulators should take a more active position "oin any type of new market, especially this type" as a cryptocurrency one.

Regulators need to number one, identify companies that are trying to do it right and work with [them]. The companies that are trying to do it right [should] get a telephone call from the regulator, not a cease-and-desist order, right? Not a lawsuit. We can usually work with them ... [and] we need to identify the fraudulent schemes and we need to act quickly and stop them.
 

Joe Rotunda

Enforcement director, Texas State Securities Board.

As reported, the event also saw calls for approaches to self-regulation, an idea that has seen advancement from both public and private sources in recent months.

G Suite & Target Twitter Accounts Hacked

Scammers hacked verified G Suite and Target Twitter account to use it for another fake "crypto giveaway"; 5.8634 bitcoins received
14 November 2018   63

Twitter accounts of one of the leaders in US retail Target and Google G Suite services were hacked by unknown, who immediately announced the free giveaway of bitcoins. The legitimate owners returned access to their pages quickly enough, but fraudsters still managed to get about $ 30,000.

After hacking the account G Suite, which has more than 800k subscribers, announced the distribution of 10 000 BTC. As reported by The Next Web, this post was deleted after 10 minutes. At the moment, Google has not commented on the situation.

Scammers message
Scammers message

Account Target, which has a little less than 2M subscribers, announced the distribution of 5 000 BTC.

Representatives Target confirmed hack of account, starting an investigation into the circumstances of the incident.

Early this morning, our Twitter account was inappropriately accessed. The access lasted for approx. half an hour & one fake tweet was posted during that time about a bitcoin scam. We have regained control of the account, are in close contact with Twitter & are investigating now.

As exploers show, there were no transfers to the of hackers of the G Suite account. However, with the help of a post on the Target page, attackers were able to get 5.8634 bitcoins.