Social Engineering and Cryptocurrency

Like any type of fraud, social engineering is a tactic used to trick people into giving away money.

But what exactly is it?

Social engineering involves manipulating individuals into making decisions they wouldn't normally make if they knew the full truth. Scammers are increasingly using this technique to lure people into investing in dubious cryptocurrency schemes. For instance, a case reported in The Guardian involved a victim who transferred over £20,000 in crypto to a scammer after connecting on a dating app.

So, stay vigilant!

How Do Scammers Use Social Engineering to Steal Crypto?

Here are some common scams we encounter:

• 1. A fraudster presents an enticing cryptocurrency investment opportunity, convincing you to send money to an investment wallet they've supposedly set up in your name. They access this wallet, and once you transfer the funds, your 'investment' vanishes into their own wallet.
• 2. Similar to the first scenario, you maintain control over your cryptocurrency wallet. However, the scammer persuades you to transfer your funds to their wallet for "investment," and, again, your money disappears.
• 3. A scammer offers a lucrative investment opportunity on an unfamiliar online platform that turns out to be a convincing fake. While it may seem like your cryptocurrency is thriving, it's all a ruse. When you attempt to withdraw your so-called winnings, you're asked to pay a fee to access your money, leading to further financial loss.

How Can I Protect Myself from Social Engineering Cryptocurrency Scams?

To safeguard yourself, remember to:

• 1. Never grant anyone access to your cryptocurrency wallet.
• 2. Conduct thorough research on companies before sending any money or cryptocurrency, especially online trading platforms.
• 3. Ignore unsolicited requests to help you invest in cryptocurrency. Always question their motives.

I've Lost Money to a Cryptocurrency Scam. Can Refundus Help?

You can try to recover your lost funds by directly contacting the banks involved. We've created a helpful guide for you [here].

Alternatively, if you'd like Refundus to handle your claim as an FCA-regulated claims management company, please fill out our Claim Form for a no-obligation consultation. If you prefer to pursue the matter on your own, we're happy to provide you with useful tips!