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scam

5 Ways to Stay Safe from Hurricane Ida Charity and Benefits Scams

Hurricanes and other natural disasters are traumatic. The most recent disaster, hurricane Ida, ripped across the east coast of the United States causing flooding and extensive power outages. Homes and lives have been disrupted and destroyed, and as a result, charitable efforts and requests have increased.

However, not all of these charitable efforts are sincere or actually go to the intended parties. The FBI has warned about charity scams any time there is a major natural disaster and this is also true in the wake of Hurricane Ida. If you realize that you have given money to what turns out to be a charity scam, fund recovery is possible with the right resources and strategy. 

Broker Complaint Registry can help you avoid these charity scams and retrieve funds from fraud. Our experts consult with clients, create intelligence reports, and outline strategies that have a proven track record of success. We have a close working relationship with banks and regulators and can help our clients retrieve their funds from crypto scams, forex scams, and other forms of financial fraud. Talk to BCR  about how to proceed with fund recovery. 

How Charity Scams Work

Charity scams, like legitimate charities, reach out to people for donations. That is where the similarities end. Real charities may have an active social media presence, but they most often do not rely on email or chat spam, cold calling, or other aggressive tactics. The reason behind these sometimes invasive tactics is to catch people off guard and discourage them from waiting or doing the research before giving. 

Charity scammers often will bombard potential targets with emotionally laden details that are meant to generate an instant response. A legitimate charity will talk about the hardships faced by those in need but will spend at least as much time describing in detail how they will provide assistance and will offer ways to check the validity of the request and the organization. Scammers will insist that money must be given right away and will not willingly let communication go without getting a large sum of money. 

Charity scams often pose as legitimate charities and will use names that are remarkably similar to those that are well-known. In some cases, they will actually create a decoy of a real charity website and use the graphic design and logos of another charity in emails. It can be difficult to notice the difference between the real and clone version of a charity. This is the reason why it is important never to click links directly on an email but to enter the email address manually and check the site is secured. 

5 Ways to Avoid Charity Scams

The following are steps suggested to avoid losing money to charity scams: 

  1. Check that the request is coming from a legitimate charity
  2. Research the Charity
  3. Give through a credit card or checks
  4. Do not click on links directly in an email
  5. Do not give out personal information except through a secure website

When you come across a charitable request and want to help those in need it is important to be on the lookout for signs of a charity scam. This means never assuming the people you are communicating with are who they say they are, even if an email looks legitimate and uses a similar logo. 

The first step is to ensure that the charitable request is coming from a legitimate charity. Do not respond to direct requests by email, text, or phone call. They may have found your email or phone number through unauthorized means. Giving your information through any means but a secured website can make you vulnerable to phishing and identity theft. Therefore, avoid pressure or haste, but take some time to investigate the charity before donating. 

Research the charity thoroughly. The Federal Trade Commission’s website has information about charities and can be a guide for your research. Look for complaints and articles on the web about the charity, although keep in mind that not all of these mentions are necessarily authentic. 

Stay aware that you may not be dealing with people who are who they say they are. Cloned emails and websites can be convincing. Therefore, when you get an email, do not download anything or click a link. Instead, note the address and type it in manually in the search box. If this takes you to a secure website that checks out as belonging to the real charity, then it may be safe to proceed. Check from reliable sources the actual address of the website so you can avoid giving money on cloned sites. 

When you feel confident that you are on a genuine, secure website, it is important to use care about how you pay. Charity scams often ask for cash, gift cards, cryptocurrencies, or wire transfers for donations. 

Asking for these payment methods is not proof of a scam, but it can be typical of those who do not want to have to give money back if their practices are called into question. Insist on paying by check or cash, which can make fund recovery easier if the charity does turn out to be a scam. 

If you follow these steps, you are likely to be safe from a crypto scam. However, there is no absolute guarantee that you will not come across a scam. If you have lost money to any kind of fraud, it is important to file a complaint and speak to fund recovery experts, such as Broker Complaint Registry. We consult with our clients and advocate on their behalf to retrieve funds that have been taken by fraud. 

Contact Broker Complaint Registry experts if you need assistance with a forex scam complaint. We deal with a variety of issues, including data theft, forex trading scams, and crypto complaints. Our team will refer you to experts who have vast experience dealing with regulators, banks, and law enforcement. We will provide advice and give you valuable guidance to help you resolve the issue.

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Forex online trading

A Brief Guide to Forex Trading Regulations in the United States

Forex is a high-risk type of trading that is focused on gaming the fluctuations in value between currency pairs. It has somewhat of a tarnished reputation because of the plethora of forex scams, however, there is nothing inherently problematic about forex trading except that it is risky. Forex is the largest financial market and sometimes as much as $6 trillion is traded daily. 

Because of the high risk associated with forex, many people incorrectly think that forex trading is not allowed in the United States. This is not correct; there are regulators that oversee forex services and rules for forex trading in the United States. The problem is that many brokers ignore these regulations, hold no licenses or pretend to have qualifications they don’t have. 

Broker Complaint Registry can help you avoid these forex scams and retrieve funds from fraud. Our experts consult with clients, create intelligence reports and outline strategies that have a proven track record of success. We have a close working relationship with banks and regulators and can help our clients retrieve their funds from crypto scams, forex scams, and other forms of financial fraud. Talk to BCR  about how to proceed with fund recovery. 

The Truth About US Regulation of Forex Services

One of the reasons people believe that forex is not allowed in the United States is that, because of the prevalence of forex scams, US financial regulators took aggressive action against fraud. Since many forex brokers are unlicensed in the first place, the fact that huge numbers of forex services closed their doors may have given the appearance of shutting down the forex market. However, this is not the case. 

Forex is highly volatile because it is so active. A forex trader can lose money unexpectedly when a government or a huge institutional investor divests or buys a certain currency. These losses are not due to fraud, but because of the volatility of the market. Add actual forex scams to the picture, and forex can seem perilous. 

However, forex trading when it is regulated is legitimate. Regulations in the United States, however, are more demanding than in many areas of Europe. That may seem counter-intutitive since the perception is that the U.S. is less heavily regulated than in the E.U. The main piece of legislation that has increased forex regulation Dodd-Frank which was passed in 2012 and provides oversight for financial services in response to the financial crisis. 

The Effect of Dodd-Frank on the U.S. Forex Market

Dodd-Frank and the Wall Street Reform and Protection Act were intended to provide security to traders and avoid the loose regulations that were blamed on the financial crisis of 2008. For forex brokers, Dodd-Frank imposes significant limits on leveraging and hedging, which can reduce losses for traders and decrease the likelihood of manipulation. Dodd-Frank also established a strict taxation policy on returns from trading and significant market capitalization requirements for those who are seeking a brokerage license for forex trading. 

Market capitalization is an important way to protect traders. This is one area in which regulation in the United States differs greatly from in many other countries, including those in Europe. To operate as a forex broker in the United States, the broker must have a license and a $50 million security fund. European forex brokers, however, need only $100,000 to $500,000 in cash reserves. For this reason, many forex brokers try to dodge these regulations and find other locations. 

United States Regulators for Forex Brokers

It is important to ensure that any broker you sign up with has a license. There can be some confusion about which licenses are required for a forex broker. Some of the main licensing bodies in the U.S. include:

  • SEC (Securities and Exchange Commission)
  • CFTC (Commodity Future Trading Commission)
  • NFA (National Future Association)
  • FINRA (Finance Industry Regulatory Authority)

If you notice that a U.S. forex broker does not have a license from the SEC, that does not mean that it is a forex scam. The fact is that the SEC does not regulate forex, because technically, foreign currencies are not securities. The CFTC regulates derivatives which include options, swaps, and futures. The NFA and FINRA are private regulators, and the NFA has dispute resolution services as well as licenses for brokers. 

Choosing a U.S. Based Forex Broker

The reason that there are fewer licensed forex brokers in the United States compared to the rest of the world is that certain requirements, such as market capitalization, are steeper in the U.S. However, it is not worth taking a risk with forex brokers who are trying to get past these regulations and operate anyway. If you want to trade forex in the United States, it may mean that you have fewer registered brokers to choose from, but after all, you only need to choose one. 

Research brokers thoroughly and look not only for licenses but for transparency about who is behind the brokerage, their names, credentials, and contact information. Look for in-depth information about accounts, platforms, spreads, fees, and commissions. 

Research brokers and find one that has a valid and current license to trade forex in your area. It is worth noting that even though a forex broker may have a license, there is no guarantee that you will not have problems with them. If you have lost money on a forex scam and need fund recovery services, contact Broker Complaint Registry right away to improve your chances of getting your money back. 

Contact Broker Complaint Registry experts if you need assistance with a forex scam complaint. We deal with a variety of issues, including data theft, forex trading scams, and crypto complaints. Our team will refer you to experts who have vast experience dealing with regulators, banks, and law enforcement. We will provide advice and give you valuable guidance to help you resolve the issue.

Categories
cryptocurrency

The SEC Calls Crypto Scams “Flavor of the Year.” 5 Ways to Avoid Them.

Cryptocurrencies have been around since Bitcoin was introduced in 2008. Since that time, cryptocurrency has been talked about now and again, but starting in 2020, digital currencies soared in popularity and now have dominated the headlines. Along with this trend is the escalation of crypto scams, to the point where the SEC has called these frauds the “flavor of the year.” 

All types of financial fraud are rising with the increased use of the internet, but crypto scams stand out as a particular threat. One of the reasons is the widespread belief that cryptocurrency can’t be recovered. However, professionals have strategies to assist clients in retrieving their funds from crypto transactions. Broker Complaint Registry plays a central role in the fund recovery space. 

Broker Complaint Registry has the right tools and experience to improve your chances of fund recovery. Our experts consult with clients, create intelligence reports and outline strategies that have a proven track record of success. We have a close working relationships with banks and regulators and can help our clients retrieve their funds from crypto scams, forex scams and other forms of financial fraud. Talk to BCR experts about how to proceed with fund recovery. 

The Problem of CryptoScams

Although there is nothing sweet about fraud, Peter Diskin, assistant regional director at the SEC’s Atlanta office has called crypto scams the “Flavor of the year,” in an interview with Marketwatch. There is a good reason for this observation. Crypto complaints to the SEC between 2020 and 2021 were at 7,000, which is 12 times the amount of the previous year. The average amount of money lost in these crypto scams has also risen to $1,900. 

Diskin expressed the urgency of cracking down on crypto scams, not only because they are more numerous than in the past, but because of the special challenges they provide for fund recovery. Increasingly, money is being diverted from consumers’ U.S. bank accounts to crypto scammers around the world. 

In addition, the blockchain is anonymous and requires a more complex process of matching transactions to individual users. Fund recovery is possible with cryptocurrency, but it is not as straightforward as a credit card chargeback, for example. 

Types of Crypto Scams to Watch Out For

The increase in crypto scams is correlated with the beginning of COVID-19. As people were home and spending more time online, they were looking for new ways to make money, particularly for those who were laid off from their regular jobs due to the pandemic. This was a major driving force for the popularity of cryptocurrency and with it, crypto scams. 

There are many types of crypto scams that target consumers, but among the most common varieties of crypto fraud include:

  1. Fake Initial Coin Offerings (ICOs)
  2. Fraudulent Bitcoin Mining Services
  3. Celebrity Social Media Scams

There are thousands of cryptocurrencies on the market, but most initial coin offerings or ICOs are frauds. According to Investopedia, 80% of ICOs are scams. This is a staggering amount, but there are many ways to avoid these frauds. Researching ICOs carefully and using only regulated ICO platforms are the key to avoid losing money in sham investments. 

Bitcoin mining is a potentially exciting opportunity. Since complicated mathematical operations and huge amounts of energy are required, bitcoin mining is often done by proxy with groups known as “pools” contributing and investing in this project. However, many bitcoin mining sites and apps turn out to be fake. They simply do not work and those who sell them disappear. 

Celebrity endorsements are a valuable marketing tool, but with crypto scams, many of these are fake. In 2020, a teenager hacked many celebrity Twitter accounts and offered fake bitcoin trading deals. Worse yet, some actual celebrities have been caught pushing bitcoin deals without disclosing the fact they are being compensated, which goes against SEC regulations. 

5 Tips for Avoiding Crypto Scams

There is no need to avoid cryptocurrencies entirely. You can hold, trade, and purchase products with crypto currencies if you follow these tips to stay safe.

  • Use only regulated financial services
  • Research services thoroughly
  • Pay through methods other than cryptocurrency
  • Use only secured website
  • Never give away your crypto codes or keys

The best way to avoid losing money to crypto scams is to work only with licensed financial services. It is easy to neglect this step and take a chance with a crypto deal, but more often than not, this can lead to financial losses. The sad truth is that few financial services behave well without significant oversight and regulators provide this oversight. Whether you are looking into a broker or an ICO platform, make sure it has a reliable license. 

Do your research and see who is behind the deal. There should be names and credentials that can be verified through a Google search. Check contact information to see if it is accurate. If you can’t identify who is running the service, that is a sign to stay away. 

Although you may like cryptocurrency, when paying for crypto services, use a credit card. This can make chargebacks convenient if there is a problem. Services that accept only cryptocurrencies are depending on the fact that refunds through bitcoin can be a challenge. 

Also, do not get involved in a deal advertised only through social media. The only place to do financial transactions online is through a secured website. This means not giving your cryptocurrency code and keys to anyone. Many of these crypto scams aim to steal your crypto and disappear. 

If in spite of following these tips you end up losing money in a crypto scam, do not give up.  Contact Broker Complaint Registry experts if you need assistance with a crypto scam complaint. We deal with a variety of issues, including data theft, forex trading scams, and crypto complaints. Our team will refer you to experts who have vast experience dealing with regulators, banks, and law enforcement. We will provide advice and give you valuable guidance to help you resolve the issue.

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cryptocurrency scam

Half of SMBs Targeted by Cybercrime– 7 Ways to Protect Your Business

Nearly everyone is aware of the dangers posed by the internet. We all know someone who has had their social media account hacked or has unauthorized charges on a credit card. Not just individuals, but small and medium-sized businesses are increasingly getting targeted by hackers. It is estimated that 51% of small businesses are hacked and of those, half go out of business within 6 months of the attack. 

These are sobering statistics, but it is important to be aware of the risks. Cyber criminals like to target SMBs or small-to-medium businesses because they can get more money from a company than an individual, and targeting large corporations is difficult because their networks are hard to penetrate. SMBs employees tend to be working at maximum capacity and can be a bit stretched. This leaves gaps in security that hackers can get past. 

Cybercriminals often have several schemes going on at once, including crypto scams and forex trading scams. Identity theft by getting customer data from SMBs can be used for other types of fraud. When this happens, it is important to file a complaint to keep company funds and client information safe. Fund recovery services can be useful for tracking down clients and retrieving the money.

Broker Complaint Registry is the right place to turn when you have lost money as a result of hacking and identity theft. We consult with clients and refer them to experts who can pursue their cases in detail and work to investigate the hackers or the broker, and in many cases, succeed in fund recovery. Talk to us today, and we can provide guidance on how to deal with the claim. 

The Dangers of Hacking to SMBs

Businesses do more than sell products and make money. They have a treasure trove of consumer data. The hackers may be trying to get their hands on company accounts but they are often after customer data. With email addresses, credit card numbers, and bank information they can commit identity theft or spam these customers with forex scams or crypto scams. 

Not only do SMBs face threats of theft, but they may lose the confidence and loyalty of their customers. If customers discover their information has been compromised when a company they do business with has been hacked, they may take their business elsewhere to a competitor that they believe has a higher level of cybersecurity.  Not only will the target company lose funds in the attack, but they could start to bleed customers.

Ways Hackers Attack SMBs

Hackers use several methods of attacking SMBs. The most common are: 

  • Mass emailing
  • Spear phishing
  • Social engineering and Impersonation
  • Calling

Most of us have received emails that look as if they are actually from trusted companies or services, such as Paypal or Microsoft. However, on closer inspection, particularly when looking at the domain of the email, it is clear they are fake. However, a split-second reaction could compromise information and can help attackers install malware on a device. 

These mass emails will claim that an account needs to be verified or that there is a similar problem and will provide a link. Once the recipient clicks on the link, they will instantly install malware on their device. It should be noted that any reputable company will ask a customer to go directly to the secure website to verify or fix an issue with an account. They will also provide more specific information than is often seen in one of these mass emails. 

SMB hacking often is accomplished through spear phishing. This involves contacting specific employees and making requests. A common example of spear phishing is a hacker pretending to be from an IT department asking for access to employee computers. They will use social engineering and impersonate a manager or a technician to gain this access. The hackers may also do this by phone to catch employees off guard. 

7 Ways to Protect Your Company from Hackers

The following are ways to keep your company safe from cybercrime. 

  1. Require installation or upgrade of anti-virus software
  2. All requests for sensitive information or access must be verified
  3. Any special requests for information will be introduced with communication from within the company 
  4. Warn against clicking on links or downloading any materials offered directly on emails
  5. Encourage employees to check the domain name on emails
  6. Require two-step identification
  7. Institute security best practices for your company

Even if hackers managed to get past certain boundaries, they can’t infect your network with malware or spyware if you have the best-upgraded anti-virus software available. Not only should a company have the best cybersecurity tools they can afford but they should ensure all employees upgrade their anti-virus software, especially remote workers. Making a special date and time for this and proof it has been done via screenshots is one of the easiest ways to protect your company. 

Require departments to send out emails letting employees know they will need access or data beforehand. Encourage employees to verify any of these requests by sending an email or calling the department before carrying out any instructions. Employees should be aware of the dangers of clicking on any links directly on emails or downloading documents. They should always check the domain name on the email. 

Two-step verification provides significant protection even in cases where hackers have gotten hold of passwords. Every company should establish a protocol of best practices for cyber-security and require compliance from all employees in all departments. 

Even when one is careful, a company can get hacked. If this occurs, it is important to report the incident immediately and consult with a fund recovery company. Getting your company and client funds back is not a pipe dream, but can be possible with the right professionals. 

Has Your Company Been Targeted by CyberFraud? Broker Complaint Registry Will Help

Contact Broker Complaint Registry experts if you need assistance with a complaint relating to fraud.  We deal with a variety of issues, including data theft, hacking, forex scams, and crypto scams. Our team will refer you to experts who have vast experience dealing with regulators, banks, and law enforcement. We will provide advice and give you valuable guidance to help you resolve the issue.

Categories
cryptocurrency

Think Crypto Scams Can’t Be Traced? Think Again

Crypto scams have increased 1,000% in nine months as of July 2021. This may sound like a hyperbole, but the data is from the Federal Trade Commission. Some people blame the pandemic and economic insecurity on this rise in crypto scams, but many cybercriminals have use these digital currencies because they believe transactions are anonymous.

Although the blockchain records all transactions publicly, they are not linked to names. This has led to a “Wild, Wild West” image connected to cryptocurrencies. People assume that anonymity means a free-for-all and that cryptocurrency transactions can’t be policed. However, these assumptions are incorrect and more crypto scams and fraudsters are being uncovered every day. 

From the 17 year old who hacked Twitter to cheat users of bitcoin to the Colonial Pipeline ransomware attack, law enforcement including the FBI are tracking down these cyber criminals. Presumably, these scammers would not have taken the trouble to mastermind these scams if they thought they would get caught, but law enforcement uncovered their tracks. 

It is important for people who have suffered from crypto scams to not stay silent. They should immediately file a complaint and fight for fund recovery. Those who have been targeted should not allow defeatism to creep in but should realize that in many cases, funds can be recovered. Broker Complaint Registry guide clients to experts who can help them recover from crypto scams. 

Broker Complaint Registry is the right place to turn when you have lost money as a result of crypto scams, forex trading scams, and other forms of fraud. We consult with clients and refer them to experts who can pursue their cases in detail and work to investigate the hackers or the broker, and in many cases, succeed in fund recovery. Talk to us today, and we can provide guidance on how to deal with the claim. 

Catching the Teen Twitter Hacker

From ripping people off on Minecraft at the age of 16, Graham Clark moved on to using social engineering scams to trick Twitter employees into providing him access to devices and then hacking into 100 high-profile accounts, including those belonging to Barack Obama, Bill Gates and Elon Musk.

 From there, Clark launched another social engineering scam that offered users a nebulous deal to double their bitcoin. Instead, he kept their bitcoin and was caught after only a few hours. The Twitter hack was not Clark’s first rodeo, but it was the largest in scale. However, the scam was quashed after just a few hours, and, for all of these efforts, he managed to grab only $118,000 worth of bitcoin from his large-scale hacking. Much of this bitcoin can be returned to owners. 

The mistake Clark made was he apparently felt invincible. He became notorious on Minecraft for peddling fake goods to other gamers and keeping their bitcoin. Clark was also suspected of being involved in another crypto scam that defrauded consumers of $856,000, but he was not charged. 

However, he didn’t realize that authorities knew his name and were on his trail. In addition, Clark and his accomplices were caught with cooperation from Discord, Coinbase, and Twitter when they noticed irregular activity. These platforms do not want to harm their reputation by not acting fast on suspected crypto scams and of course are bound to cooperate with the FBI. 

 Discord presented the FBI with records of chats between the accomplices. Coinbase, which spotted signs of a crypto scam and shut it down from receiving an additional $280,000 in bitcoin handed the bitcoin codes to the FBI and from there they, officials were able to connect the bitcoin to the identity of the hackers. 

This flies in the face of the common view that cryptocurrency can’t be traced. As a result, Graham Clark and his accomplices Mason Shepherd, 19, Nima Fazeli, 22, face 30 felony charges in Flordia. Clark may have gotten away with crypto scams scott-free at one point, but no more. 

Following the Money in the Colonial Pipeline Ransomware Affair

The Colonial Pipeline affair was a ransomware attack that interfered with fuel supplies in the Northeast. It was one of the largest pipelines in the United States and to avoid a fuel crisis, Colonial paid a ransom of $4.4 million in bitcoin or 75 bitcoin to restore service. 

Many people were upset at the payment of this ransom because they believed that the cryptocurrency that was paid out would be impossible to trace. However, the FBI has recovered $2.7 million of the lost bitcoin just weeks after the incident. 

The expression “follow the money” works for tracking down many types of scams, and that includes crypto scams. The authority the FBI holds and improved technology of fund recovery professionals has made it easier to track down cryptocurrency transactions and crypto frauds. 

How Authorities Uncover Crypto Scams

The weight and authority that the FBI and Interpol have enable them to subpoena records from companies. In the case of the Colonial Pipeline ransomware crime, the FBI obtained cryptocurrency records, was able to identify the bitcoin wallet that was involved in the transaction, and requested a court order to gain access to the bitcoin codes. 

In the case of the Twitter hack, the cooperation of Discord, Coinbase, and Twitter with the FBI revealed the identity of Graham Clark and his accomplices. If authorities can track down crypto scams in major frauds such as the Twitter and Colonial Pipeline crimes, fund recovery companies and law enforcement can improve their clients’ chances of getting their money back.

Have You Been the Target of crypto scams? Broker Complaint Registry Will Help

Contact Broker Complaint Registry experts if you need assistance with a complaint relating to scams.  We deal with a variety of issues, including data theft, forex scams, and crypto scams. Our team will refer you to experts who have vast experience dealing with regulators, banks, and law enforcement. We will provide advice and give you valuable guidance to help you resolve the issue.

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Uncategorized

The Twitter Hack and The Role of Social Engineering in Crypto Scams

Twitter users throught that former President Barack Obama, Bill Gates and Elon Musk were offering them an opportunity to double their bitcoin in just a few hours. If they checked the authenticity of the account, they would have discovered that these posts were from the actual celebrity accounts. However, anyone who were involved in this deal lost their bitcoin to the tune of $116,000. 

This Twitter hack occurred in the midst of the pandemic when people were spending more time online and were desperate for ways to make money. The crime was an example of a crypto scam that used social engineering–a sophisticated method of disguising identity and building a false sense of security among potential victims. 

Scammers are finding increasingly sophisticated ways of creating fake identities and stealing money through crypto scams and forex trading scams. Social media platforms such as Twitter are becoming the venues for these frauds. If you have lost money to one of these scams, it is important to report it to authorities and seek the assistance of fund recovery experts. 

Broker Complaint Registry is the right place to turn when you have lost money as a result of hacking and identity theft. We consult with clients and refer them to experts who can pursue their cases in detail and work to investigate the hackers or the broker, and in many cases, succeed in fund recovery. Talk to us today, and we can provide guidance on how to deal with the claim. 

What Are Social Engineering Scams?

Social engineering is a method scammers use to gain access to victims and their accounts. They do this by building a false sense of trust by pretending to be someone the victim already knows, or impersonate someone they admire or claim to represent a government organization.

Social engineering can be more effective than regular hacking. According to traditional hacking, the cybercriminal tries to gain access to a network or a device through indirect methods or by breaking into it through malware or getting a hold of codes and passwords. 

Tech-savvy cybercriminals may manage to hack systems, but software protecting devices and people from malware have become increasingly sophisticated. It is much easier to simply ask the victim for access by pretending they are a technician or from within the company. This is what occurred with the Twitter hack when the hackers claimed they were from the IT department. 

In addition to masquerading as the IT department of a company, hackers use social engineering scams in the following ways: 

  • They may call someone, pretend to be from the IRS or another government agency, and claim that they need verification or access a computer directly for security reasons. 
  • They could be fake brokers who tell clients they need to control their computers so they can help them trade
  • A fraudster could contact someone claiming to be a technician and say they need to log in to their device so they can fix the problem. 

It should be noted that technicians almost never need to access a computer directly. What usually happens is they will ask the person to log in for them and then they will make the repairs without asking for any passwords or login in data. 

The request for this kind of access should always require multiple verifications of the authenticity of the request and the identity of the person. 

How did the Twitter Crypto Scam happen? 

The Twitter crypto scam occurred in two phases. The first was the actual hack or social engineering scam that gave the hackers access to the network and the second was the social media imposter crypto scam that robbed users of over a hundred thousand dollars. 

The cybercriminals pretended to be from Twitter’s IT department and asked Twitter employees to directly access their VPNs. There were many Twitter employees working remotely because of the pandemic and many had unsecured VPNs. When they granted the fake IT people this access, the hackers then stole data about high-profile Twitter accounts. 

With this data, they logged into the Twitter accounts of Barack Obama, Bill Gates, Elon Musk, and other celebrities. They offered users the chance to double their bitcoin in just a few hours. When people gave over their bitcoin for trades, they didn’t receive any money back. Twitter management cracked down on the scam after a few hours. 

Ways to Avoid Social Engineering Scams? 

There are several features in this social media crypto scam that are often seen in other types of fraud. The following are ways you can stay safe from social engineering scams.

  • Be skeptical of requests to access a computer or device directly
  • Verify the person and the authenticity of the request for private information
  • Don’t let them rush you–scammers will try to pressure you to act quickly to keep you from doing research
  • Do not participate on money-making schemes on social media
  • Do not send money through cryptocurrency and only through a secured website
  • Ask for various means of contact. Call the phone number they give you and ask for video calls

Even with these tips, you still may be the target of social engineering frauds, crypto scams, and forex trading scams. If you have been affected by fraud, report the incident to authorities and work with a fund recovery company to help you track down the scammers. Working with experts in the fund recovery process will increase your odds for success. 

Have You Been the Target of Fraud? Broker Complaint Registry Will Help

Contact Broker Complaint Registry experts if you need assistance with a complaint relating to scams.  We deal with a variety of issues, including data theft, forex scams, and crypto scams. Our team will refer you to experts who have vast experience dealing with regulators, banks, and law enforcement. We will provide advice and give you valuable guidance to help you resolve the issue.