Safeguarding our customers is a top priority for LondonLink. By using advanced security measures and working closely with the authorities, we contribute to identifying and reducing the prevalence of fraudulent activity in the cryptocurrency space. You, too, can play your part by remaining vigilant and reporting incidents at the earliest opportunity.
Understanding the Common Scams
The following are some of the most common scams to be aware of:
The Get-Rich-Quick Scheme
This classic scam involves fraudulent investment platforms promising exorbitant returns.
Here’s how it typically unfolds:
- The Lure: You receive an invitation or come across an enticing advertisement promising quick and substantial profits from an investment opportunity.
- Initial Investment: You transfer funds (e.g. GBP, EUR) to that platform, expecting high returns.
- Withdrawal Roadblock: When you try to withdraw your supposed earnings, the platform claims you must first pay a fee or tax in fiat (e.g. GBP or EUR) or in cryptocurrency.
- Onboarding with Us: The fraudsters encourage you to set up an account with a cryptocurrency service provider like ours to buy the required cryptocurrency.
- Transfer to Scammers: Once you purchase the cryptocurrency, you send it to the fraudsters, hoping they will release your investments. Unfortunately, they disappear with all your funds, leaving you with nothing.
The Wallet Setup Fraud
Another scam involves fraudsters masquerading as helpful agents who assist in setting up your cryptocurrency wallet:
- Fake Assistance: A fraudster offers to help you set up a cryptocurrency wallet, which you believe you control but which, in fact, is under their control.
- Directed to Our Platform: You are then directed to a cryptocurrency service provider like LondonLink to buy cryptocurrency.
- Loss of Funds: Once you transfer the purchased cryptocurrency to the wallet, it is now in the fraudster's control. They will typically transfer it to further wallets under their control to make it harder to trace, leaving you with nothing.
Recognising the Red Flags
To protect yourself from falling victim to these scams, be vigilant and watch for the following warning signs:
- Unsolicited Offers: Be wary of unsolicited investment offers or those found on social media sites, especially if they promise high returns with minimal risk. Remember, if it sounds too good to be true, it probably is.
- Pressure Tactics: Fraudsters often create a sense of urgency to pressure their victim into making quick decisions without proper due diligence.
- Unusual Payment Requests: Legitimate platforms will not ask you to transfer cryptocurrency to release funds or pay fees.
- Third-Party Assistance: Someone who helps you set up a cryptocurrency wallet will almost certainly have access to your private keys and/or recovery phrases and, therefore, the ability to take your cryptocurrency.
- Remote Access Software: Fraudsters might ask you to download remote access software (e.g., TeamViewer), which they then use to gain access to and control your computer (and, therefore, your private and financial information).
Steps to Protect Yourself
- Beware Third Parties: Never allow third parties to (1) set up or help you set up a crypto wallet or (2) onboard or communicate with a service provider like LondonLink on your behalf - we do not work with such third parties.
- Secure Your Wallet: Only use cryptocurrency wallets that you set up yourself or those provided by trusted, regulated service providers. Never share your private keys or recovery phrases with anyone.
- Do Your Research: Before investing or transferring funds, thoroughly research the service provider or individual. Look for reviews and feedback from other users on established review sites. Also, check the name against warning lists issued by your financial regulator.
- Verify Contacts: Double-check the authenticity of any contact claiming to represent a legitimate business.
- Seek Professional Advice: If an offer sounds too good to be true, consult with a financial advisor or a trusted professional before proceeding.
- Suspected fraudsters: We have identified entities referring to themselves as SydneyFX, DexterFX and Solidus Markets as potential fraudsters in the cryptocurrency space. We therefore recommend that you exercise extreme caution with them.
What to do if you Suspect Fraud
If you believe you have fallen victim to a scam or have had any interactions with SydneyFX, DexterFX, Solidus Markets or any other suspicious service provider, please take the following actions immediately:
- Report to the Authorities: Contact your local law enforcement and report the scam.
- Notify Us: Inform our Support team about your experience. We are committed to assisting you and preventing further incidents.
- Monitor Your Accounts: Keep a close eye on your financial accounts and wallets for any suspicious activity.
Stay safe and vigilant. If you have any concerns or need assistance, do not hesitate to contact our support team. Together, we can create a safer cryptocurrency community.
