As an investor, one of the first things you do is due diligence. This involves checking a few things such as approval from regulatory authorities. Deceptive crypto trading providers seem to have caught wind of this and are now creating fake authority websites to dupe unsuspecting customers into thinking they are legit.
The Canadian Securities Administrators (CSA) has issued a warning to investors regarding fake crypto trading service providers. These entities falsely assert that they are authorized or affiliated with regulatory or dispute resolution organizations that do not actually exist.
In an attempt to deceive, these dubious trading service providers assert certifications from fictitious authorities or membership in non-existent dispute resolution organizations. They go to great lengths to present themselves as a "reliable and trustworthy online trading platform" based on these phony certifications.
Notably, some of these fraudulent trading services' websites even feature links to counterfeit regulatory or dispute resolution organizations, each with their own seemingly genuine websites.
The CSA has identified several fictitious regulatory or dispute resolution organizations, including;
At a glance, the website looks legit featuring references to complaint processing, dispute resolution, and investor remedies. In fact, even the location checks out to real places such as Canary Wharf in London or Plaza de Mayo in Buenos Aires.
However, upon a closer look, the cracks of illegitimacy begin to show. The websites often have a strange and unpolished language with mistakes in spelling, grammar, or how words are put together. This is a clear sign that the websites are likely run by dishonest people trying to trick you. Any legit website will take its time to refine its language, especially when it comes to regulatory bodies.
Being able to identify crypto investment scams is a must-have skill as it helps you avoid the many pitfalls set out by scammers.
It is imperative for investors, particularly those involved in cryptocurrency investments, to be aware of the following:
In addition to the above information, individuals thinking about investing in crypto assets should take the following steps:
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