An Internet Stranger Befriends You: This introduction can be done in many different ways, here are some red flags to look for:
“Oops, wrong number” texts
Quick friendship or flirting
Pressure to act quickly
Fake screenshots & “success” stories
Sign-up links provided to you for “oversees exchanges” that are “not that well-known”
Gaining Trust: They build personal trust through regular communication and may even engage in video calls with you. The connection will feel personal, but these are professionals who have mastered their trade.
Investment Pitch: They claim to have secret or expert trading knowledge, usually involving complex or hard-to-grasp crypto concepts (which generally is senseless gibberish), and encourage you to invest, ensuring they know what they are doing. They’ll send you a link to a platform for depositing your funds. This website will typically mimic common trading platforms like Crypto.com or Coinbase. This initial deposit is your first loss.
Keeping The Illusion: They will let you “trade” and make small, seemingly legitimate profits so you feel like you’re winning. Some skeptics might try to withdraw these small profits, and the scammers may actually allow it to gain further trust. The scammer may encourage you to invest more as there is a big opportunity coming up you won’t want to miss out on.
Hitting the Jackpot: Your trading hits the jackpot, and you “profit” 10x-100x your investment. At this point, most people try to claim their profits.
Capital Gains Tax Scam: When you try to withdraw your money, they’ll say, “Sure, no problem. You just need to pay a portion of your capital gains tax first. Talk to ____ at the tax department”. They request this payment before depositing your funds and will begin to pressure you to pay within a certain time period or you will lose access to your profits. This is their true target.
