Crypto fraud: Man from Bavaria loses six-figure amount!

Crypto fraud: Man from Bavaria loses six-figure amount!

A man from Bavaria has fallen victim to a scam in which he lost a mid-six-figure amount in crypto trading. The 45-year-old had been in contact with a woman on a social media platform since the beginning of the year who told him about her success in crypto trading. She recommended a specific trading platform on which he started investing. At first, the man was able to watch his assets grow by up to 200 euros every day. This perceived success led him to invest further in the platform.

When he finally requested a payment, it was refused, citing an alleged back tax payment. Instead, he spent even more money, which ultimately resulted in him losing a sum in the mid-six figures over several months. Due to this investment fraud, the Kaufbeuren criminal police have initiated an investigation. The police warn urgently against websites and platforms that promise quick and high profits and recommend checking the legal notice and the license from the Federal Financial Supervisory Authority (Bafin).

More fraud cases in Germany

The police in Ulm report another case in which a 42-year-old woman may have been cheated out of 100,000 euros. In March she responded to an advertisement on Facebook, also registered on a recommended platform and invested a total of 100,000 euros. She was led to believe that she would win, but so far she has not been able to record any real profit.

These cases of fraud are part of a larger problem in Germany and worldwide. As the daily news reported, the damage caused by crypto asset fraud worldwide amounts to around 70 billion euros. There are new victims being exposed in Germany every day. Perpetrators often use psychologically sophisticated methods and are often victims of these schemes themselves.

Systematic attacks and new technologies

Interpol Secretary General Jürgen Stock highlights that there are systematic attacks from fraud centers in regions with weak state surveillance. The use of artificial intelligence for so-called deep fakes in fraud cases is particularly perfidious. One example is Abdus S. from Bangladesh, who worked as a cyberslave in Cambodia and was forced under miserable conditions to fake relationships with his victims in order to lure them into investing in fake crypto exchanges.

Police authorities and governments are working to counteract this type of fraud. For example, the Bavarian Ministry of Justice has reached an agreement with Interpol to improve international cooperation. The US authorities have also added a Cambodian businessman linked to the so-called “pig butchering” scam to the sanctions list.

The problems caused by fraud in the crypto sector cannot be underestimated. Victims report extreme stress and in some cases even suicide. Fraud cases are often difficult to investigate because they usually take place abroad. Investigating authorities are faced with the challenge of combating these unscrupulous activities and protecting future victims.