Bad Actors are Posing as Crypto Investment Consultants to Scam People

Due to excessive marketing and media exposure, cryptocurrencies have become a popular asset commodity over the recent years. A lot of people from all walks of life who want to make some money and multiply their investments want to get a chance to find out the best project. There are more than 4000 variants in the cryptocurrency industry.

For an average person, it is impossible to understand so much knowledge so soon. Therefore, people must be able to get access to an expert who can guide them through the process. Such a notion has given rise to many scammers who are posing as expert authority on the matter of crypto investment and promise their investors a guaranteed profit. There are many telltale signs of a fake influencer who is posing as a cryptocurrency expert.

Theresa Morrison is a CFP or Certified Financial Planner at Beckett Collective. Speaking to the Times, she revealed some important points that are useful for the investors to figure out the legitimate consultants from the fake ones. When it comes to people’s health, there is no way that a person would want to get a medical prescription from a person who is not a doctor. In the same manner, it is not a great idea to put the trust in a financial advisor with no qualifications.

She pointed out that if any person claims that they are going to provide their consumers with a guaranteed profit, it means that they are bluffing. If the consultant wants to keep their real identity under the guise, it means that they are not trustworthy. If the financial advisor wants to get paid in cryptocurrencies or gift cards, it means that they are not qualified enough. If a person does not have any proven track record with cryptocurrencies, it means that they are lying and experimenting.

Fake Financial Advisor from California to Face Many Years in Jail

Last year, a fake financial advisor hailing from California deceived many people into putting their money into a shady project. As a result, many people end up losing millions of dollars. According to the government record, the amount that was lost is valued at $20 million. One report by Financial Trade Commission reveals a heavy loss.

The FTC noted that investors ended up losing an average of 1,900 per victim by getting into fake or unqualified investment consultants. The hefty amount of loss was recorded in 6 months only. Therefore, it is best to take care of the important pointers before picking out a guidance counselor for investment. The official website of FTC also provides detailed guidelines about the same matter.