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Beware the Fake Crypto Gurus
In this edition of #ScamDecoded, we’ll dive into one of the most widespread crypto scams. These days, everyone wants to know how to make money in crypto and, of course, seeks the opportunity to find the right person to teach them. Well, sometimes it’s for worse.
The recent case of Brian Sewell, a 51-year-old crypto trading course instructor, serves as a warning against fake “gurus” trying to lure investors into dubious schemes. Sewell was convicted of defrauding 15 students out of $1.2 million through his American Bitcoin Academy.
He falsely claimed to be creating an AI-powered crypto hedge fund to maximize profits, but the SEC found no evidence of AI development. Instead, Sewell simply converted the invested funds into Bitcoin for his own benefit before claiming his wallet was “hacked.”
As AI capabilities grow in crypto, regulators are cracking down on such scams to protect users. The $1.6-million restitution order against Sewell highlights the risks of blindly trusting self-proclaimed crypto trading gurus promising outsized returns through unproven technologies like AI trading bots.
Investors must remain vigilant against potential fraudsters exploiting emerging crypto and AI trends through deceptive pitches. Thorough due diligence is crucial before investing.
Crypto Insider
Why Public WiFi Is Insecure
In today’s edition of #ScamDecoded we’ll cover one of the most underestimated dangers. For example, it may hit you while simply scrolling through your crypto assets in the nearest coffeshop.
Public WiFi hotspots present significant security risks. You may ask why. Well, all the dangers lie in the so-called “Man-in-the-Middle” (MitM) attacks.
In a MitM attack, a hacker intercepts communication between a user and a website, redirecting the user to a fraudulent site to steal login credentials and other sensitive data. Common MitM techniques include WiFi eavesdropping, packet sniffing, cookie theft, and session hijacking.
While convenient, free public WiFi lacks robust security protections, exposing users to these insidious attacks that compromise privacy and enable identity theft.
Using a VPN and avoiding activities requiring personal information are key precautions against the ever-present threat of MitM attacks.
Crypto Insider
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