A deposit scam involves an individual reaching out to you unsolicited and requesting to become your “investment advisor” or ”trader”. They will request that you create an account on Cape Crypto, using either your own ID documents, or ID documents supplied by them, and will then provide you with funds to deposit, or alternatively request for you to use your own funds often guaranteeing profits or payment in return. Deposit scams are a constant threat in the industry and with every one that gets shutdown a new one seems to pop up.
- Too good to be true returns and profit
- Requires you to buy and send Crypto to an external Exchange or account
- Pressure to invest immediately
- Claiming to be part of a regulated or legitimate exchange
- Unsolicited cold calls, emails or social media private messages
- Refer to themselves as an “investment advisor”, “broker” or “”account manager”
- Provide “promotional” offers
- Providing you with an ID document to verify your account
- Will send large sums of money to your account to deposit for them
- Offer “bonuses” to those who deposit larger amounts
- Demand you to pay a “tax”, “fee”, or “commission” to withdraw your profits
- Will require the use of Remote Access Software
- Unable to explain how they got your contact information
How to Protect Yourself
The best way to protect yourself is to educate yourself on how they work. You should be cautious of too-good-to-be-true promotions and promises to get rich quick. Once you send crypto to the firm, there is no way of retrieving it unless they send it back, which is highly unlikely.
A checklist to avoid deposit scams / fraudsters:
- Do you know the person personally, or know anyone personally who has dealt with this person?
- Determine if they want to send you money to deposit on their behalf
- Determine if they want you to use your own money
- If the person claims to be from a company, determine where the company is registered and if there are any reliable reviews confirming it’s the real address of the company
- Be extra cautious with people claiming to be “Blockchain Recovery Experts” who claim they can retrieve your stolen funds
- Does it require sending funds / Crypto to an account / address that you do not control or own in its entirety?
If you need to report an incident or you have fallen victim to this type of scam, submit a request