Cryptocurrency scams are on the rise, especially in South Korea, where scammers are targeting unsuspecting users on chat apps. The police have issued a warning about these scams, urging the public to be cautious when engaging in trading- and investment-themed channels.
In recent months, the Sejong South Police Station has received numerous reports from citizens who have been deceived by false promises in investment “reading rooms” on chat apps. These reading rooms are popular among South Korea’s retail crypto market participants, with hundreds of channels on apps like Telegram and KakaoTalk.
Many of these chat rooms are filled with traders discussing the future of popular cryptocurrencies and altcoins. However, some rooms are run by scammers who make exaggerated claims of guaranteed profits and lure unsuspecting members into VIP rooms where they are asked to deposit large sums of money on unlicensed crypto exchanges.
Once victims deposit money, scammers either disappear or refuse to return the funds, leaving individuals devastated and financially ruined. The police have emphasized that there are no guaranteed high returns in financial investments and have warned the public to be wary of potential fraud.
In a recent case in Busan, the police shut down a $32 million chat app-based crypto scam ring operated by a network of gangsters. These criminals used violent tactics to deceive unsuspecting individuals nationwide, resulting in numerous arrests and the exposure of their bogus crypto sites.
As the popularity of cryptocurrencies continues to grow, so do the risks associated with scams and fraud. It is crucial for individuals to exercise caution when engaging in chat rooms and investment opportunities on chat apps. By staying informed and vigilant, users can protect themselves from falling victim to crypto scammers and ensure a safe and secure trading experience.