A Reminder to Invest in Crypto Safely After Virginia Man Loses Life Savings to Crypto Scam

The opportunity to invest in cryptocurrency can provide massive returns for some lucky investors who get in early enough with successful options. Before making any decisions, people need to first gather enough knowledge about the crypto market. As cryptocurrency expert Michael Graw states, people deciding what is the best crypto to buy must first look at a variety of defining features including their real-world utility, demand, market capitalization, all-time high prices, and presale bargains.

Failure to do this could result in a financial loss, as one Virginia man recently found out. Charles Cox fell victim to a scammer that gained his trust over time and eventually conned him out of his life savings worth $272,000. He was initially contacted via Facebook by a man with a mutual acquaintance who sent a friend request.

Cox accepted the request from Jansen David and the two struck up a conversation over the social network’s messenger service. David then suggested they continue their conversation on WhatsApp with conversations ranging from relationships to cooking and family.

The conversation inevitably turned towards work and David revealed that he also dabbled in crypto investment outside of his work in Denver. He showed Cox some of his investments before asking if he wanted to invest.

David then sent a seemingly legitimate link to a website where Cox could invest in Bitcoin. His initial investment of $1,000 seemed to do well and as he continued to invest, his account continued to show good returns.

While Cox was aware of online safety and potential scams, he was under the impression a friend had sent him a link to a real website that was showing regular updates.

Eventually, Cox was talked into making a larger investment and put $185,000 into his account. Still unaware that he had been the victim of a financial crime, it wasn’t until he got a visit from Adult Protection Services that he got the shock news.

Cox was told that the website he had been using was completely fake, as was the identity of the man he had been friends with for months. This sophisticated fraud required someone to gain the confidence of Cox and to set up a website that looked legitimate and kept Cox informed of alleged profits.

Cox is not alone in falling for this type of online scam which FBI Special Agent Kevin Gallagher names as a crypto confidence scam.

It is still unknown how Adult Protection Services were made aware of the scam, but things could have progressed had they not arrived when they did. Cox’s bank was unable to recover the funds, leaving him hundreds of thousands of dollars out of pocket.

To avoid scams like this, consumers are advised to never click on sent links and only visit the website directly. You should always be skeptical of any potential financial transaction and never share personal info online.

Cryptocurrencies can be extremely good investments and provide significant returns when invested responsibly. It’s vital that you only buy crypto from legitimate exchange sites and thoroughly research the crypto before investing. You should also set yourself an investment budget, diversify your portfolio, and stay informed about the crypto market as much as possible.

Disclaimer: This is a press release. The publication on this page should not be viewed as an endorsement by CoinGuides.org. CoinGuides is not responsible, directly or indirectly, for any loss or damage caused and we are not responsible for the accuracy or quality of the content on this page. We highly recommend all readers to conduct their own research before investing in the company, products or services mentioned in the above article.