Binance Security Report Examines Crypto Scams And Their Motives

A new report is in the Binance news as it sheds light on the newest crypto scams and how ones targeting cryptocurrency investors attempt to gain credibility. The report is known as the Binance Security Report, where the exchange observed fraudulent investment schemes promising quick or exponential returns on cryptocurrency investments.

The frauds do not only concern the crypto users but also forex, binary options and contracts for difference (CFDs). The Binance Security Report was published on June 30, right after a new scam in the Bitcoin scams news targeted the residents of Winnipeg, Canada, in late June this year.

As you probably know, scam organizations are frequently the subject of regulatory warnings but are often using different and seemingly unrelated brands. What looks like dozens of projects can most of the time be only different branches of one big operation. In some of the cases, “one brand might be crypto specific and other may focus on forex or CFDs.”

Creating false consumer organizations which squeeze victims for more funds, there are fraudulent entities that become suspicious but no one can fully investigate. In cases like these, the organizations are scam and people try to report them.

Meanwhile, projects often fabricate regulators and governmental agencies such as corporate registers in an attempt to earn the trust of investors. As the Binance Security Report added, the global nature of many of the scams make the legal action against them way harder.

“[Scam] victims are often situated all over the world, living in jurisdictions that are different from the pseudo-services to which they fall victim. […] As one may expect, this not only results in an increased level of difficulty for law enforcement investigations but also complicates the process of establishing connections between victims,” the report reads.

In times when cryptocurrency scams are more and more prominent in this world, the Binance Security Report is a bright light which comes to play as a resource that can encourage investors to be more careful when spending or investing their money.

For more relevant information on the subject and guidance on how to protect yourself from the common scams, read our Bitcoin scams news.