At face value Bitcoin can earn great returns for investors. A legitimate investment business which is fast gaining recognition across the world. There is no going back on crypto currencies! However few know or can explain in simple terms how this currency came about, how people make or lose money. Where to buy it as well as where to use it. Where to report in terms of losses or who to sue.

The lack of the above crucial information is creating a gap for fraudsters who are now creating ponzi schemes where members of the public are invited to invest funds into a pool with promises of high interest returns. The end result is a significant number of people are losing money to con men! In a recent case which has been circulating on social media–close to $40,000 was lost to a conman who is on the run. His modus operandi was as follows:

  1. Invite members of the public to join a Bitcoin  Group
  2. Entice members with evidence of huge profits
  3. A few invest money and get hefty returns
  4. More people join and wire funds to him to invest on their behalf
  5. After everyone had transferred funds totaling $40,000 he disappears from the scene.

Attempts to track the culprit through use of his mobile money numbers do not bear  fruit as he had covered his tracks well by dubiously registering his number.

Lessons learnt

  • Attend Bitcoin awareness programs, learn more before investing.
  • Know well the risks and opportunities involved-do not give funds to anyone to invest on your behalf
  • Internet business is good but extremely risky, before parting money its important to phone the land line of the person you are sending money to, physically visit their premises if feasible. Distance increases risk and the more the distance between where you are based and where the person you are dealing with stays-the higher the risk.
  • Be on guard, treat everyone with suspicion especially on social media.
  • If it is too good to be believed then it probably is, use your gut instinct.

Do not lose out on opportunities in Bitcoin but be careful of fraudsters! About 99.9% of groups sprouting up on social media are created by fraudsters.



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