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How to keep your funds safe by never trusting potentially fraudulent investment advisors
How to keep your funds safe by never trusting potentially fraudulent investment advisors

And why you should never allow others to access your user profile.

Kriptomat Support Team avatar
Written by Kriptomat Support Team
Updated over 9 months ago

Kriptomat is a licensed and regulated platform for digital currencies located in the EU. It allows our users to safely and easily buy, sell, store, and use digital currencies in their local language and with local support. Our operation is transparent and responsible towards the user and we put a lot of effort into making sure that the funds of our users remain safe.

However, the users themselves remain solely responsible for securing access to their own accounts. If some scammer convinces you to voluntarily transfer funds towards an investment proposal that turns out to be a scam, we are unable to prevent you from transferring those funds or to reverse that action after the fact.

It is critical to understand that cryptocurrencies are extremely safe to use, but their very nature is such that the transactions are irreversible. This fact is attractive to scammers who often pose as investment advisors. They can essentially run away with your money if they manage to convince you to send cryptocurrencies to their private digital wallets.

Kriptomat is not an investment advisory service, nor is it not associated with any investment advisors. In addition, Kriptomat doesn’t offer vouchers, and it doesn't enable the redeeming of any vouchers.

We are committed to protecting our customers from scammers, deceitful investment managers, and fake brokers. We do not condone fraudulent activities and maintain enhanced security measures to identify and prevent fraud.

Investment Scams and fake brokers - How to spot and avoid them

Investment fraud is one of the most popular forms of financial crimes. Fraudsters create attractive looking investment websites where they offer services related to professional trading services. People are usually offered to invest money in something that is alleged to guarantee a profit (also known as “get rich quick” schemes).

Schemes involving cryptocurrencies often work as follows:

  1. You see an ad on social media or other portals possibly with a local celebrity in the ad. You sign up and you get a call. A scammer poses as an "investment advisor" or a "professional broker" and offers you to invest funds in some cryptocurrency to get a profit (as much as 2500% or more in a matter of days).

  2. You will open a professional trading account with the alleged company.

  3. The scammer offers to guide you through the process of registration and verification on a crypto exchange (for example, Kriptomat due to its ease of use) and they install on your computer a remote desktop software to guide, such as Anydesk or Teamviewer. 

  4. You are then asked to deposit money and purchase some cryptocurrency. In some cases, they will also enable you to withdraw some money first, to gain trust and get you interested.

  5. The scammer asks you to send the cryptocurrency to some address with claims that they will make professional trades and return the funds once profits have been made.

  6. In reality, the cryptocurrency simply ends up in the scammer’s own private wallet. And, as crypto transactions are irreversible, it is not possible for you to request a refund. Kriptomat cannot do anything for you in this case either.

These "investment advisors" usually disappear without any trace. Some of them mislead people by making them believe their first investment has successfully made a profit.

How to Protect Yourself from Crypto Scams

  1. Don’t fall for attractive offers. Professional-looking and attractive ads, Facebook posts, and websites don’t necessarily mean a legitimate investment tool. 

  2. Double-check information. Thoroughly research an investment firm or professional you are dealing with. Check credentials, licenses, their track record. You can google a company’s name — or even a phone number — to check if others have reported a person or organization as a scam. Definitely try to obtain references and recommendations from people you trust (and those should not be people from a Telegram community, who you never actually met). Every company should have clear comp/any details such as https://kriptomat.io/impressum/

  3. Don’t send cryptocurrencies to unknown wallet addresses. You won’t be able to request a refund or a chargeback.

  4. Do not let other people control your computer. This is the same as if you let thieves to freely enter your house and walk around! Never let other people install remote desktop software on your computer.

  5. Never give your passwords to anyone! If someone asks you to share your Kriptomat registration email and password, it should be an immediate red flag that they are a scammer. Never allow anyone to access your user profile. 

  6. Check the licenses. Any responsible company working in the cryptocurrency industry today should hold verifiable licenses for its operations. If a company cannot provide this information, then you should proceed with extreme caution. Kriptomat holds a License for providing financial services - virtual currencies services

  7. Use common sense. Make an educated decision on who to trust and who not to trust. We do not suggest trusting promises of easy money, high returns, etc. Help us improve the image of the cryptocurrency sphere, build trust and try to prevent scams and Ponzi schemes. Avoid working with services that should not be trusted.

Official Channels for Communication

We use social media to spread our message and to hear from our community. But please keep in mind that these channels are not secure for handling support issues and we do not provide support via these channels. 

Our main forms of communication with registered users are:

Our official social media channels are:

If you see any other social media profiles that claim to be Kriptomat, please report them immediately!

List of identified and potentially fraudulent companies/websites:

It is of utmost importance to clarify that:

  • we are not in any way connected to any of the companies listed below (hereinafter the Merchant). 

  • the Merchant is not a registered user of our platform and we do not have any records of their activity with regards to our platform. 

  • we have never done any business with them; in fact, we have never even communicated with them. 

  • our business model does not include any cooperation with third parties acting as an investment intermediary, financial brokers or similar, nor do we provide any financial advice ourselves.

  • the list consists of merchants that our compliance team has detected by the fraud reports of our users.

List of identified and potentially fraudulent companies/websites::

Libra markets

Olympia markets

Bilin Capital

Tima trade

CNV Capital

Proufx

Avex capital

Girofx

Grandefex

Malley capital

Altosmarket

CTX Prime broker

DGX LTD

ADV Investment

WDC Markets

The Capital Stocks

Alphalive

Platinium Fund

MyCapital.io

Big Liquidity

Capital Fx

Northstate

Fortis Enterprise

Olympus Global

Royal forex

Trust FX

Kronos Invest

ActiveKSA

York CG

FT traders

Insure Trade

TDI partners

Interactive trade

Uptrademarket

Finocapital

OTPFX and many others...


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