SCAMS BULETIN Host Jay White is an inactive attorney in San Mateo County, California.

January 25, 2021

GOLD AND CRYPTOCURRENCY SCAMS

WHAT IS A CRYPTOCURRENCY?

A cryptocurrency, cybercurrency, or digital currency (they all mean more or less the same) is simply a way of electronically transferring value from one person or organization to another, in a similar way as dollar bills.

And like dollar bills, most cybercurrencies are only worth what people believe they’re worth.

Gold coin and cybercurrency Bitcoin are being used to target vulnerable investors, mainly seniors, during these times of economic uncertainty.

Victims are being tricked into handing over millions of dollars for over-priced bullion coins or lured into the prospect of large profits amid the turbulent pricing of Bitcoin.

Gold is frequently used as a safe-haven investment. With lockdowns and other restrictions hitting the economy hard, experts say they expect gold prices to rise steadily during 2021.

On the other hand, cyber currencies like Bitcoin are soaring and plunging, sometimes overnight, creating big losses for some and huge profits for others. Some analysts say the price could reach levels in six figures within the next year or two.

Both gold and Bitcoin are complex markets, calling for considerable personal knowledge and investment skill to avoid big-time losses.

Bitcoin transactions are untraceable, which means they’re favored by crooks as well as legitimate firms.

GOLD SCAMS

One of the most common scams involves the selling of metal that isn’t what it’s purported to be, either not gold at all or of a lower quality or karat value.

This is often in the form of jewelry. Scammers range from parking lot tricksters who offer fake gold– usually brass–to passers-by. The scammer is often supported by a stooge who seemingly happens to walk past and “confirms” its value to be ”22 or 24 karat”.

People who fall for the scam — lured by social media and TV or radio ads — are often repeatedly pestered by the crooks to buy more, at increasingly inflated prices.

The US Commodity Futures Trading Commission (CFTC) says the best way to avoid gold fraud is to:

         * Be wary of salespeople who can’t prove they’re licensed to trade and who pressure you into buying right now, often by offering a supposed instant discount.

          *Beware of online and broadcast ads that “guarantee” price rises or claim you can’t lose.

          *Do your research, checking the seller out with the CFTC and other regulatory agencies.

          * Never yield to pressure to “buy now” and, as with all investments, seek advice from a financial professional.

FAMOUS NAMES USED IN BITCOIN SCAMS

           *Disregard so-called influencers — people, especially celebrities, who are paid to recommend certain products online.

Russian scammers are reported running a global racket using names and images of well-known celebrities, sports stars, and financial experts. For instance, recent ads have used the name of tennis star Boris Becker and international consumer finance expert Martin Lewis.

If a Bitcoin promo is using a well-known name, be on your guard. It’s almost certainly a scam.

Bitcoin and other cybercurrencies are hugely complicated and require a high level of knowledge and skill for successful investment. An investment expert should first be consulted.

ATTRIBUTON: scambusters.com