<p>The South Korean Financial Supervisory Service (FSS) <a href="https://www.fss.or.kr/fss/bbs/B0000188/view.do?nttId&#61;129526&amp;menuNo&#61;200218" rel="noopener noreferrer nofollow">issued a press release</a> today to warn investors against fraudulent cryptocurrency investment schemes.</p><h2 id="header-0">406 reported scams in two months</h2><p>Between June 1 and July 30, the FSS received a total of 406 reports of crypto scams that lured individuals with false promises of high returns. Some of these perpetrators went to the extent of misrepresenting themselves as employees at crypto exchanges or project foundations. The FSS <a href="https://medium.com/&#64;coinness.gl/korean-financial-authority-installs-report-center-to-counter-crypto-scams-459a3b792c96" rel="noopener noreferrer nofollow">installed</a> a virtual asset scam report center two months ago, which will run until this year’s end, as an interim measure before the implementation of <a href="https://medium.com/&#64;coinness.gl/koreas-virtual-asset-user-protection-act-to-take-effect-in-july-next-year-d3df61766cd6" rel="noopener noreferrer nofollow">the Virtual Asset User Protection Act</a> in July of next year.</p><h2 id="header-1">Six scam types</h2><p>To strengthen its efforts, the FSS has shared six reported case types with the public and has issued investment warnings accordingly. Investors are advised to exercise caution when dealing with unlisted cryptocurrencies at low prices, as accurately determining their value can be challenging. Similarly, the FSS cautions against investing in cryptocurrencies sold at low prices with trading restrictions, as this could lead to difficulties in liquidating tokens if the price drops.</p><p>The FSS also emphasizes the importance of being wary of cryptocurrencies with low trading volumes, as they can experience drastic price fluctuations due to limited activity. To prevent falling victim to impersonation scams, investors are urged to be cautious of individuals claiming to be employees of domestic virtual asset service providers or presenting official documents to solicit investments.</p><p>Furthermore, the financial watchdog stresses the risks associated with suspicious requests associated with electronic wallets, particularly connecting to them via unsolicited emails, as they pose a high risk of being hacked.</p><p>Lastly, the watchdog warns against falling for promises of high returns linked to cryptocurrencies endorsed by celebrities or well-known companies, as these may be illegal deposit-taking activities performed by unlicensed entities. The FSS advises investors to remain vigilant, conduct thorough research, and approach investment opportunities with skepticism to protect themselves from potential crypto scams.</p>

Korean Financial Watchdog Warns Investors Against Crypto Scams

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CoinNess Global

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