FTC’s New Workshop Informs Public About Crypto Scams

FTC will hold a Cryptocurrency Workshop on June 25. Various industry players will come together to discuss how scammers are exploiting cryptocurrency industry avenues to scam people. The event is free for public and will broadcast live on their website.

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Decrypting Cryptocurrency Scams

US Federal Trade Commission wants you to learn more about scams by attending a workshop organized on June 25 at the Depaul University. The “Decrypting Cryptocurrency Scams” workshop will highlight how scammers exploit unsuspecting victims in crypto industry. It will seek to empower them to avoid the scammers. The event will bring together law enforcement agencies, consumer advocacy groups, and private sector business.  

The event is free for the public to attend. It will also be live on the FTC workshop, for those unable to go to the physical location.  According to a statement by FTC, some of the scams reported in the crypto industry include deceptive investment and business opportunities, bait-and-switch schemes, and deceptively marketed mining machines.

FTC’s effort –  Way to prevent Scam in cryptocurrency industry

Interest for cryptocurrencies among the public went up in the last year as the value of cryptocurrencies shot up especially in the final months of 2017. This happened even as cryptocurrencies gained popularity among the public. It also resulted in a higher number of cryptocurrency projects and ICOs in the last one year especially in the final months of 2017. This made many scammers to target it as a rich ground for them.

FTC has already ordered some cryptocurrency groups and companies to stop businesses on suspicion of being or promoting scams. The latest is restraining orders to four investment groups in Florida.

In a nutshell, crypto scam promises or guarantees an exorbitant return to investors seeking to lure them to make small investments. The scam schemes are many as it is today and keep reinventing themselves. Some have pure intention to hold ICOs and then disappear into thin air. Others deceive users to give their private data promising them deposits and then steal from them. Some work more like a pyramid scheme with a high-tech spin where profits paid to old members derives from new members joining the network.

FTC is not the first or alone

Other bodies encouraging public awareness about scams include the Security Exchange Commission. It has been advising on regulation about tokens, taxation, and crypto trading. Additionally, it put forward to prevent illegal market practices such as ‘pump and dump.’

How effective will workshops help reduce the number of scams in cryptocurrency industry?

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David Kariuki is a journalist who has a wide range of experience reporting about modern technology solutions including cryptocurrencies. A graduate of Kenya's Moi University, he also writes for Hypergrid Business, Cryptomorrow, and Cleanleap, and has previously worked for Resources Quarterly and Construction Review magazines.

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