"Investment Loss Compensation, Free Coin Distribution"...Warning on Surge in Virtual Asset Investment Scams

While the enthusiasm for virtual asset (cryptocurrency) investments continues, investment scams exploiting promises such as 'investment loss compensation', 'free coin distribution', and 'guaranteed high returns' still remain rampant.

On the 10th, the Financial Supervisory Service announced, "The number of reports on virtual asset investment scams increased by 59.1%, from 66 cases in January this year to 105 cases in June."

The FSS explained that fraudsters "approach victims under the pretense of compensating for past financial investment losses or personal information leakage, build credibility by presenting fake documents in the name of government agencies or impersonating employees of financial companies, provide fake coins under the promise of loss compensation with a guaranteed high return, and then claim that coins were overpaid and coerce the victims to deposit the cost of the coins or induce them to take out additional loans."

During this process, the victims often end up accepting the scammers’ unreasonable proposals, believing that their losses have actually been recovered. The FSS warned, "Although only the tactics change, the same methods are repeatedly used in virtual asset investment scams," and strongly advised people "not to fall for the following typical scam phrases."

Common scam phrases for virtual asset investment include:

"We will compensate your investment losses.", "We will provide compensation for personal information leakage.", "We are contacting you following the loss compensation (refund) recommendation from ◎◎Committee (government agency).", "Loss compensation will be paid in advance with ◈◈coin.", "To receive free ◈◈coins, you need to sign up with the exchange."