As Asian cryptocurrency scams spike, investor education is key to combating menace

After hitting a record high of US$73,000 last week, the price of bitcoin declined to US$67,197 on Thursday evening (Hong Kong time), which was more than double from US$28,000 a year ago.

As a new generation of investors cheers the revival of bitcoin, many of them could become victims of scams conjured by burgeoning criminal networks that enlist more recruits to dupe unsuspecting investors.

The billion-dollar industry often targets individuals who are tricked into working at huge scam centres where, through violence and intimidation, they are forced to defraud legions of investors. Illegal cryptocurrency platforms are invariably used to swindle victims, experts say.

In Singapore alone, scam victims reportedly lost S$651 million (US$486 million) last year – likely an understated figure as many incidents are never reported by victims due to fear of stigmatisation.

The process usually starts with scam syndicates dangling bait for recruits.

The International Justice Mission (IJM), an anti-human trafficking organisation, says criminals typically use social media platforms to advertise supposedly lucrative jobs. When victims take the bait and arrive at locations arranged by the traffickers, their passports and mobile phones are confiscated to prevent them from leaving or calling for help.

Hundreds of thousands of workers have been enslaved to work for scammers in the region, according to IJM.

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‘It’s scary’: Asian cryptocurrency scams bilk tens of thousands of ‘brainwashed’ victims

Jackie Burns Koven, a cyberthreat analyst, said, scammers often target their victims via a fraudulent cryptocurrency trading platform.

“So in most cases, there’s a sophisticated web layout where individuals or victims depositing funds will see that there