ESAs Warn of Rising Crypto Fraud in New Guide

The factsheet highlights how criminals exploit the unique features of crypto assets for fraudulent activity. 

Key takeaways include: 

➡️ Crypto as a prime target: The speed, anonymity and irreversibility of crypto transactions make consumers especially attractive to fraudsters, increasing risks of financial loss and identity theft; 

➡️ Common scam tactics: Fraudsters use techniques such as Ponzi schemes, fake investment opportunities, impersonation, phishing, romance scams and look-alike wallet addresses to deceive victims; 

➡️ Clear warning signs: Promises of guaranteed high returns, unsolicited offers, urgency to act, requests for private keys, and payments via untraceable methods are highlighted as red flags; 

➡️ Practical protection steps: Consumers are urged to pause before acting, verify sources carefully, never share passwords or seed phrases, secure devices, and use official channels to check providers; and 

➡️ What to do if scammed: Immediate action is critical, including stopping transactions, changing passwords, contacting crypto providers, and reporting incidents to authorities. 

✅ Firms should remain alert to evolving crypto fraud, reinforce customer education and warnings, and review scam prevention controls to protect consumers and prevent losses.