1000% Profit? If You Know 'This', You Won't Be Fooled
As the prices of virtual assets like Bitcoin are once again on the rise, cases of victims falling prey to illegal fundraising schemes and pyramid schemes due to insufficient scrutiny are increasing. From January to March, the Financial Supervisory Service received 59 consultations and reports related to illegal fundraising disguised as virtual asset investments, a 47.5% increase compared to the same period last year. Financial authorities and the National Police Agency have warned investors to be cautious as these fraudulent methods continue to evolve.
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Attorney Hyeonsu “Elliot” Jin of Decent Law Firm explained that there are five key things to know to prevent cryptocurrency fraud. The first is to emphasize "ID verification." Attorney Jin stated, "You should check the other party's ID, take a photo or record the information as evidence, and since IDs can be forged, it’s also a good idea to ask for additional documents such as a seal certificate."
Using a "credit card" can also be a preventive measure. It is safer than coin transactions, which are difficult to trace, and wire transfers, which make recovering lost funds challenging. Additionally, visiting the company's address listed at the bottom of the virtual asset website, checking whether the terms and conditions are properly written, and confirming if the virtual asset is traded on domestic exchanges are also effective methods.
Attorney Jin advised, "If you fall victim to fraud or suspect fraudulent activity, it is more efficient to consult a lawyer, gather evidence, and then proceed with legal actions such as filing a complaint or lawsuit, rather than reporting the issue immediately."
