SEC Issues Investor Alert on Five Ways Fraudsters May Lure Victims into Crypto Asset Securities Scams

According to Foresight News, the U.S. Securities and Exchange Commission (SEC) has issued an investor alert outlining five ways fraudsters may lure victims into scams involving crypto asset securities. The first method involves fraudsters contacting potential victims through social media platforms or text messages to gain their trust. Secondly, fraudsters may use emerging technologies such as AI to hype up their schemes. Thirdly, fraudsters may impersonate or infiltrate credible sources to appear more trustworthy. Fourthly, fraudsters may inflate the price of crypto assets and then sell for profit, including so-called 'memecoins'. Lastly, fraudsters may demand additional fees, falsely claiming that these will enable users to withdraw from their accounts or recover losses.