Repeated Similar Fraud Schemes in the Past
Do Not Believe They Will Reveal Their Face
Advertisements for automated cryptocurrency futures trading programs that can be easily found on YouTube. Although they guarantee principal and high returns, victims complained that they lost their principal in an instant. (Source=YouTube)
[Asia Economy Reporter Gong Byung-sun] Mr. A, a man in his 50s, came across an advertisement on YouTube. It was good news for those unfamiliar with cryptocurrency investment, claiming that the principal and large profits were guaranteed. Mr. A had often heard success stories about cryptocurrency investment from people around him, and since the person appearing in the video even showed their face, he thought it was trustworthy. However, he lost all his principal in an instant, and even his complaints were ignored. Mr. A said, "I lost a total of 100 million won," adding, "It was an ad on YouTube, so I never imagined it would be a scam."
According to our investigation on the 20th, scams claiming to generate investment profits through automated cryptocurrency trading are still rampant on YouTube. Since the same tactics are being used while changing websites, investors need to be cautious.
One YouTube video introduced an investment method that guarantees the principal and makes it easy to earn profits, claiming earnings in the range of 100 million won over three months. The person appearing in this video introduced an unknown cryptocurrency futures automated trading site and explained that entering the provided code would automatically generate profits. They also emphasized investing at least 1 million won because the profit is proportional to the seed money. The video has been viewed over 400,000 times, indicating many people have seen it.
However, according to reports, the investment method introduced in this video was found to be close to a scam. Ms. B, a woman in her 30s, decided to invest and contacted the program creator through a KakaoTalk open chat room introduced in the video comments. The creator then provided a bank account number and instructed her to deposit as much as she wanted.
Ms. B initially deposited 1 million won and waited. However, the chart moved regardless of Bitcoin prices, and she lost all her money in less than five minutes. When Ms. B complained, the creator explained that it was because she deposited too little money and asked her to deposit more into the same account number. Ms. B hesitantly deposited an additional 3 million won but lost all the money in the same way.
Ms. B said, "Since the person introduced the investment method while showing their face, I didn't think it was a scam," adding, "When I asked the creator to return the money, they threatened to file a counter-lawsuit, claiming defamation."
Around October last year, a YouTube video advertised a cryptocurrency futures automated trading program similar to this one. (Source=YouTube)
Furthermore, victims pointed out that this program is similar to scam tactics that caused victims in the past. Around October last year, advertisements claiming that profits could be realized simply by entering codes into a program mixing 30 trading methods were frequently seen on YouTube. This too gained victims' trust by having the person in the video show their face.
Cryptocurrency scam damages have surged sharply since last year. According to data from the office of Yoon Chang-hyun, a member of the People Power Party, the damage amount related to cryptocurrency crimes from January to November last year exceeded 3 trillion won. This is about 14 times higher than the damage amount of 213.6 billion won in 2020.
What to do if you are confused whether the investment method introduced in a YouTube video is a cryptocurrency scam?
▲Be suspicious if they guarantee the principal.
▲Be suspicious if they ask you to contact them via KakaoTalk open chat rooms.
▲Be suspicious if they ask you to deposit money into a specific account.
▲Do not trust just because they show their face.
▲In Korea, cryptocurrency investment advice or proxy investment is not legally protected.
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