The Division of Consumer and Business Education of the U.S. Federal Trade Commission (FTC) published an article August 21 titled “How to avoid a Bitcoin blackmail scam.” The FTC’s letter focuses on consumer protection, in what it calls a “new scam targeting men,” warning about blackmailing scams demanding payments in Bitcoin (BTC). The brief letter states: “Here’s how it works. Scammers have been sending letters to men, demanding payments using [B]itcoin in exchange for keeping quiet about alleged affairs. The letter also explains how to use [B]itcoin to make the payment.” Among the “classic signs” of blackmailing, the FTC lists …

Android’s Google Play Store has recently become a spot for hosting another reported Ethereum (ETH) scam application, The Next Web reports August 21. Lukas Stefanko, a malware researcher from Slovakia, found a fraudulent “Ethereum” application on Google Play that had been allegedly offered for purchase at price of €335 or around $388, according to The Next Web. In an August 20 tweet, the researcher noted that buying the app is “not the same” as an Ethereum purchase, implying that his recent discovery is a crypto scam intended to defraud users by mimicking the original altcoin Ethereum, which is worth around …

Indian police have arrested a man who was allegedly involved in promoting the Bitconnect investment scam, Financial Express reported August 18. The suspect, Divyesh Darji, is said to have been the India head of Bitconnect, the high-yield investment program that ceased its operations in January 2018 after coming under scrutiny for appearing to be a fraudulent Ponzi scheme. Darji, a resident of Surat city, had reportedly already been issued with a look-out circular and was arrested August 18 in Delhi airport, after a tip-off from local immigration services. Financial Express cites Inspector P G Narwade of Criminal Investigation Department (CID-Crime) …

The U.K.’s Financial Conduct Authority (FCA) has said that crypto investment scams are increasingly targeting British investors, in an official warning published August 17. The watchdog warns that fraudsters often use celebrity images, slick websites or “prestigious” City of London addresses as a smokescreen through which to lure prospective investors. It adds: “Scam firms can manipulate software to distort prices and investment returns. They may scam people into buying non-existent cryptocurrencies. They are also known to suddenly close consumers’ online accounts and refuse to transfer the funds to them or ask for more money before the funds can be transferred.” …

A recent report from Russia-based antivirus and cybersecurity firm Kaspersky Labs states that in the second quarter of 2018, cybercriminals stole over $2.3 million dollars via crypto scams. The report, entitled “Spam and phishing in Q2 2018,” notes so-called “crypto giveaways” as a pervasive example of phishing, wherein cybercriminals dupe individuals into giving up sensitive information as part of a too-good-to-be-true promotion giving away popular cryptocurrencies. In these crypto phishing scams, unsuspecting individuals are fooled into voluntarily giving up important information on convincing but malicious copies of popular crypto wallets and markets. Kasperksy states that cybercrooks also pose as new …

The U.S. Securities and Exchange Commission (SEC) announced in an order Wednesday, August 14, that it has barred and fined the creator of Tomahawkcoin over a fraudulent Initial Coin Offering (ICO). Tomahawkcoin, which David T. Laurance ran as a token through his corresponding company Tomahawk Exploration LLC, failed to raise funds via an ICO in 2017. Having issued tokens via a “Bounty Program in exchange for promotional services,” Laurance, who has a previous record for securities fraud, again “violated the registration and antifraud provisions of the federal securities laws.” “Investors should be alert to the risk of old-school frauds, like …

British police have warned the public about fraudulent investment schemes involving cryptocurrencies, the volume of which has led to 2 million pounds ($2.55 million) worth of losses this summer, according to an announcement published August 10. In the announcement, the police cite statistics prepared by the Action Fraud national reporting center for fraud and cyber crime, which shows that in June and July victims reported losses of $2.5 million in cryptocurrency scams. The average loss totaled to roughly 10 thousand pounds ($12,700 thousand) per person. Director of Action Fraud Pauline Smith said: “It’s vital for anyone who invests or is …

Thai police have detained 27-year old actor Jiratpisit "Boom" Jaravijit in an alleged $24 million cryptocurrency scam, Bangkok Post reported August 9. Jiratpisit is reportedly one of the seven suspects in the alleged crime, including his older brother and sister. On July 26, the Criminal Court awarded a warrant for his arrest following a complaint from a Finnish man that he had fraudulently lured foreigners into investing 797 million baht (nearly $24 million) worth of cryptocurrencies. Jiratpisit has been detained on charges of money-laundering activity, which he denies. The alleged cybercrooks reportedly promised to purchase shares in companies that invested …

UK regulator the Financial Conduct Authority (FCA) has issued a second warning in a week Wednesday, August 8, over crypto-related “fraudsters” claiming to be an FCA authorized firm. According to the FCA, the rogue firm, Good Crypto, was giving out “false details or mix[ing] these with some correct details of the registered firm,” which in this case was London-based Arup Corporate Finance. “This FCA authorised firm that fraudsters are claiming to work for has no association with the ‘clone firm,’” the regulator continues. Good Crypto has its own website and other contact details, which the FCA warns “may be false” …

Tokyo-based security software manufacturer Trend Micro has found Bitcoin (BTC) automated teller machine (ATM) malware available for purchase online, according to a blog post published August 7. In the blog post, Trend Micro cites an advertisement posted by an “apparently established and respected” user on a darknet forum. For the price of $25,000, criminals could purchase Bitcoin ATM malware accompanied by a ready-to-use card with EMV and near-field communication (NFC) capabilities. EMV chips were originally developed by leading credit card providers to store data on integrated circuits rather than magnetic stripes, while NFC enables two electronic devices to wirelessly exchange …

South Korean police have raided the office of a local firm whose alleged crypto scam promised investors the spoils of a sunken Russian warship, The Korea Herald reported August 7. The Seoul Metropolitan Police Agency reportedly sent 27 investigators from its white collar unit to to collect evidence from the premises of Shinil Group in Yeouido, western Seoul, and seven other locations on Tuesday. In mid-July, Shinil had released submarine footage of what it claimed was the wreckage of the Dmitrii Donskoi, an armored Russian cruiser that sank in 1905 in the midst of the Russo-Japanese war, alleging it had …

The U.K. Financial Conduct Authority (FCA) has warned investors about a so-called “clone’ company of investment firm Fair Oaks Capital Ltd., in a statement published Aug. 7. Clone firms are companies that carry out business activities under the pretense that they are a firm registered by the FCA. Almost all legal entities involved in financial services in the U.K. must be authorized or registered by the FCA. In the statement, the FCA outlines a fraudulent company targeting people in the U.K. using registration data of firms authorized by the regulator. The clone, Fair Oaks Crypto, allegedly aims to hoodwink potential …