Instagram Crypto Scheme
When it comes to social media and emails — we all know not to click on links sent by someone we don’t know. But what about a link sent by a friend?
Crypto scammers are now using fake and imposter Instagram accounts to lure in their victims to shell out their money in hopes to earn from the digital asset.
Consumers reported losing more than $80 million to cryptocurrency investment scams between October 2020 and March 2021, an amount 10 times higher than the same period a year earlier, according to the Federal Trade Commission.
Experts say the scammers often rely on social media, stealing users’ photos and videos to create fake profiles that lure in victims with the promise of huge returns on crypto investment.
Instagram strongly encourages users to use two-factor authentication to make their accounts much harder for hackers to gain and retain access to an account. The company, owned by Meta (previously Facebook), also urges people not to use the same password across several different platforms and accounts, as this makes it much easier for hackers to gain access.
Several Instagram users told CNBC they have been reporting imposter accounts for years and so far, not much is being done to prevent it from happening.
For Alex Saunders, a cryptocurrency commentator and former board member of Blockchain Australia, the message is that scammers are everywhere online and that you should assume the worst.
“People are just way too trusting online,” he says.
“Scammers are clever. They’ll work out ways to trick people into giving them their things. And one day all your crypto is gone.”
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
