Two Portuguese citizens recently found themselves over $312,000 poorer, victims of a sophisticated cryptocurrency scam. Both were residents of Cantanhede in Portugal’s Coimbra District; drawn in by the allure of “quick profits” guaranteed by staking coins on a crypto platform, neither could resist the promise of significantly augmenting their fortunes.
One victim blindly transferred $213,000 worth of Bitcoin to an address he believed belonged to a reputable crypto firm. He was confidently assured that he could make over $800,000 just by holding his Bitcoin on the platform. Duped by the same scam, the second victim sent a combined total of $94,000 within a month’s time.
Soon, red flags started appearing. Attempts to withdraw their tokens were met with demands for an additional 3% fee on their stakes. Later, they were hit with another surprise when told their coins were frozen and would require thousands of USD in “unlocking fees.” The stark realisation of their loss eventually led them to report the fraudsters to the police.
It seems the duo is not alone. Portugal’s Cybercrime Office reports that cryptocurrency scams have more than doubled over the past two years, indicating a troubling trend on the rise. This figure is underscored by the 94 reports of crypto-related scams the office has received this year, a sharp increase from the 38 reported in 2021.
Drawn by the lure of quick profits, victims have been reporting significant financial loss on multiple platforms. By the time a complaint is filed however, most platforms have vanished, taking with them any details or contact information that could help investigators track the internet servers they were using.
Once hailed as a crypto investor’s utopia due to its lack of taxation on crypto trading profits, Portugal has seen a rise in cybercrime rates. The government, recognizing the potential for misuse and fraud, has unveiled plans to levy a tax on crypto-related capital gains at 28% in 2022. It remains to be seen whether this strategy will curb the burgeoning scam rates and bring some semblance of security to the country’s crypto enthusiasts.
Source: Cryptonews
