During over twelve months of investigating online cloud mining, online crypto investment companies, online faucets and countless crypto websites promising the sublime to the ridiculously - there is one little trick that turns out to be hugely costly to yourself, and sometimes those you might unknowingly drag into such fraudulent projects.
Almost every single scam site will be using trickery from the multilevel marketing structure, namely criminal activity known as Ponzi Schemes. But along with the trickery the not to funny losing crypto happens - Here is how.
Firstly you are directed to a website from an advert you clicked... maybe this ad offers you a 1% to 160% bonus scheme in the the guise of interest. You may be also incentovised into the fraud by the offer of a financial reward in Cryptocurrency to join. You will now take note that this is a huge part of the ponzi scam.
This deposit will be enough to cover your initial first withdrawal request... This will give you a psychological safety net - the fraudsters hope is that your thinking is that you will try out the service and then trust the company when they pay you your first payment. Often you the investor will withdraw at the minimum first time to test the trust in being paid.
You will of course be paid that small payment. You may then decide to tell your friends who will be incentovised with a reward on your link. You in turn may now trust the fraud to buy a package and so now the fraud truly begins.
Your initial package will possibly be the lowest investment, don't worry about 70% of all investments are quite low. Another stat that plays into the fraud... However there is that 30% that will go for the higher packages. These packages play a huge part in financing the payments for the first payments on low level investments.
For the many investment scams a withdrawal request comes with quite a mixture of fee rates. But a fee you must pay one way or another in order to receive your payout. Some other websites will use the higher paying investments to cover the next point in the scam.
You will now wait a bit if time to be paid... Depending on the terms given to you when depositing initially any crypto to the scam, this could be up to 30-days. You will be paid... Almost certainly be paid - the problem will be a much lower amount than you withdrew... The hope is now that you will try to contact the company.
Be aware the above company still has not replied... *wink*
This is all part of the next stage in the crypto scam, no matter if this is cloud ming fraud or p2p crypto investment fraud... This stage is delay tactics while the fraudsters rinse as much as they can over a two to three month period... Some manage to pull the scam off for much longer before the fraudsters shut shop and run with your crypto onto the next scam.
Often these scams are run in huge networks and have up to a dozen or more websites running a similar theme and scam... Believe me there are HUNDREDS of these websites.
In my opinion you are honestly only safe investing in known and branded companies that have been reputable for many years or have come along with very real and professional backing fully insured and searchable. Don't fall into the trap... Research and find reviews... Stop throwing money and crypto at get rich schemes like this, it is the only way these criminals will leave.
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