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It seems that New Zealanders – or at least New Zealand’s authorities – now learned what many others have already learned: whilst the cryptocurrency industry is seething, it is also accompanied by predators who prey on this newly-discovered exotic land of opportunity.
New Zealand’s police recently released a special warning for citizens not to engage in dubious online ventures, with a specific emphasis on Bitcoin.
Canterbury Police are reminding people to be vigilant of online scams and think twice before sharing private information after a victim lost $320,000 of their life savings.
It appears that the New Zealander crypto scam operated not particularly different than other types of internet scams: fraudsters promised high returns for investing in cryptocurrencies, then convinced the victims to invest even more (sort of upselling), and ultimately the scammers apparently ran off with the funds.
New Zealand is hardly the first country whose law enforcement agencies warn against cryptocurrency frauds, and in all likelihood not the last; cryptocurrency is a global phenomenon and it occurs everywhere, and accordingly its darker sides as well. Probably most famously are the U.S. authorities, which quite commonly release similar cautionary messages.
The best advice about crypto scams (and just scams in general) could be actually found in New Zealand’s new warning.
Senior Sergeant Paul Reeves warned that if an investment seems too good to be true, it probably is.
Wise words, Senior Sergeant Reeves, wise words.