The Cybercrime Investigation and Coordinating Center (CICC) has issued a warning to the public about a surge in cryptocurrency and dollar investment scams coinciding with Bitcoin’s recent record highs.
As Bitcoin prices approach the US$100,000 mark, scammers are increasingly exploiting the heightened interest in digital assets to defraud unsuspecting investors.
CICC warns: Scams on the rise
According to the CICC, 14 complaints have already been filed by victims lured into fraudulent investment schemes. These scams typically involve promises of high returns, urgency to act quickly, and investments ranging from US$100 to US$1,000.
Most perpetrators are foreign nationals who push victims to deposit funds into overseas accounts. Once payments are made, scammers abruptly cease all communication, leaving victims without recourse.
This warning echoes concerns from the U.S. Federal Trade Commission (FTC), which has observed a similar uptick in global investment scams amid the rising popularity of cryptocurrencies.
Bitcoin’s rally and rising risks
At the time of writing, Bitcoin is trading at US$99,136.12 (₱5,844,471), according to CoinGecko, marking a 4.3% increase in the past 24 hours.
This unprecedented rally has drawn legitimate investors and opportunistic scammers alike.
In the Philippines, Google searches for Bitcoin have surged to a 90-day high, reflecting growing public interest. However, the excitement surrounding cryptocurrency is tempered by risks, with many victims falling prey to scams due to a lack of knowledge or the allure of guaranteed profits.
Authorities sound the alarm
The CICC urges investors to exercise caution and verify the legitimacy of investment offers with regulatory agencies.
“Too-good-to-be-true” deals and high-pressure tactics are common red flags, according to the agency.
To assist the public, the CICC encourages victims to report scams through its toll-free Inter-Agency Response Center hotline at 1326.
Roel Garcia, a crypto enthusiast and fraud prevention advocate, emphasized the importance of due diligence, saying, “Bitcoin’s rising value should inspire careful investment, not rushed decisions. Scammers thrive on the lack of awareness, and education is the best defense.”
While crypto enthusiasts may argue that technology can “bank the unbanked” by allowing people without bank accounts to quickly send and receive money across borders through e-wallets and other digital financial substitutes, it may be better to err on the side of caution.
After all, cryptocurrencies can also give them access to other financial services and opportunities that would have not been available to them otherwise.
How to protect your crypto investments
Authorities and industry experts recommend several steps to safeguard digital assets:
- Educate Yourself: Learn the basics of blockchain, crypto trading, and security practices.
- Verify Sources: Double-check the legitimacy of investment offers with regulatory bodies or trusted organizations.
- Avoid High-Pressure Sales Tactics: Scammers often create urgency to push you into making hasty decisions.
- Use Secure Platforms: Stick to reputable cryptocurrency exchanges and wallets.
- Report Suspicious Activity: Promptly report potential scams to the CICC or other authorities.
Despite its growing mainstream adoption, Bitcoin remains a complex and volatile asset, often misunderstood by new investors. A 2023 study by ConsenSys and YouGov revealed that fear of scams is the top barrier preventing Filipinos from entering the crypto space, followed by concerns over market volatility and insufficient knowledge.
The CICC’s warning is a timely reminder for both seasoned and new investors to remain vigilant. While Bitcoin’s soaring value continues to generate excitement, it also highlights the critical need for awareness and due diligence in navigating the evolving crypto landscape.
For further reading, BitPinas recently explored Bitcoin’s value fluctuations from 2009 to 2024, offering insights into how its purchasing power has evolved—from street food to luxury items like Teslas.
As Bitcoin’s meteoric rise captures global attention, it underscores the dual nature of opportunity and risk in the cryptocurrency market. By staying informed and cautious, investors can navigate this dynamic space while protecting themselves from scams.
For more information or to report suspicious activity, contact the CICC via its toll-free hotline at 1326.