Rs. 14 Car Crypto Scams

Rs.  14 Car Crypto Scams

COLOMBO (News 1st) – The Financial and Commercial Crimes Bureau of Sri Lanka’s Criminal Investigations Department has arrested three people for committing massive cryptocurrency fraud of around Rs. 14 billion (US$37,891,504.00)

Police spokesperson and lawyer SSP Nihal Thalduwa told reporters on Thursday (27) that the scam was perpetrated by a Chinese couple along with the Sri Lankan identified as Lamahewage Shamal Keerthi Bandara.

The Chinese couple were arrested at Katunayake International Airport and the police spokesperson said 8,000 people were defrauded by these fraudsters.

The police spokesperson said Lamahewage Shamal Keerthi Bandara has been running the hoaxes since 2020 from an office set up at the Colombo World Trade Center.

However, he was released on bail after he was produced in court, the police spokesperson said.

The police spokesperson said the three criminals are deceiving unsuspecting people by promising them huge returns for their crypto investments.

What is cryptocurrency?

Cryptocurrency is a type of digital currency that usually only exists electronically. You usually use your phone, computer or a cryptocurrency ATM to buy cryptocurrency. Bitcoin and Ether are well-known cryptocurrencies, but there are many different cryptocurrencies and new ones are constantly being created.

How do people use cryptocurrency?

People use cryptocurrency for many reasons – fast payments, to avoid transaction fees charged by traditional banks, or because it offers a degree of anonymity. Others hold cryptocurrency as an investment, hoping that its value will go up.

How do you get cryptocurrency?

You can buy cryptocurrency through an exchange, an app, a website or a cryptocurrency ATM. Some people earn cryptocurrency through a complex process called “mining,” which requires advanced computing equipment to solve highly complicated math problems.

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Where and how do you store cryptocurrency?

Cryptocurrency is stored in a digital wallet, which can be online, on your computer, or on an external hard drive. A digital wallet has a wallet address, which is usually a long string of numbers and letters. If something happens to your wallet or cryptocurrency funds – such as your online exchange platform goes down, you send cryptocurrency to the wrong person, you lose your digital wallet password, or your digital wallet is stolen or compromised – you are likely to find that no one can intervene to help you get your money back.

How is cryptocurrency different from the US dollar?

Because cryptocurrency only exists online, there are important differences between cryptocurrency and traditional currency, such as the US dollar.

Cryptocurrency accounts are not backed by a government. Cryptocurrency held in accounts is not insured by a government like US dollars deposited into an FDIC insured bank account. If something happens to your account or cryptocurrency funds—for example, the company that provides storage for your wallet goes out of business or gets hacked—the government has no obligation to step in and help get your money back.

Cryptocurrency values ​​are constantly changing. The value of a cryptocurrency can change rapidly, even changing from hour to hour. And the amount of change can be significant. It depends on many factors, including supply and demand. Cryptocurrencies tend to be more volatile than more traditional investments, such as stocks and bonds. An investment worth thousands of dollars today may be worth only hundreds tomorrow. And if the value goes down, there is no guarantee that it will go back up.

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Pay with cryptocurrency?

There are many ways in which paying with cryptocurrency is different from paying with a credit card or other traditional payment methods.

Cryptocurrency payments do not come with legal protection. Credit and debit cards have legal protection if something goes wrong. For example, if you need to dispute a purchase, the credit card company has a process to help you get your money back. Cryptocurrencies usually do not come with any such protection.

Cryptocurrency payments are usually not reversible. Once you’ve paid with cryptocurrency, you can usually only get the money back if the person you paid sends it back. Before buying anything with cryptocurrency, know the seller’s reputation by doing some research before paying.

Some information about your transactions is likely to be public. People talk about cryptocurrency transactions as anonymous. But the truth is not so simple. Cryptocurrency transactions will typically be recorded in a public ledger, called a “blockchain”.

It is a public list of all cryptocurrency transactions – both on the payment and receipt side. Depending on the blockchain, the information added to the blockchain may include details such as the transaction amount, as well as the sender’s and receiver’s wallet addresses. It is sometimes possible to use transaction and wallet information to identify the individuals involved in a particular transaction. And when you buy something from a seller who collects other information about you, such as a delivery address, this information can also be used to identify you later.

How to avoid cryptocurrency scams

Fraudsters are always finding new ways to steal your money using cryptocurrency. To avoid a crypto scam, here are some things you should know.

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Only scammers demand payment in cryptocurrency. No legitimate business is going to require you to send cryptocurrency in advance – not to buy anything, and not to protect your money. It’s always a scam.

Only scammers will guarantee profits or large returns. Do not trust people who promise that you can make money quickly and easily in the crypto markets.

Never mix online dating and investment advice. If you meet someone on a dating site or app and they want to show you how to invest in crypto, or ask you to send them crypto, it’s a scam.
Find crypto-related scams

Scammers are using some tried and true scam tactics – only now they’re demanding payment in cryptocurrency. Investment scams are one of the best ways scammers trick you into buying cryptocurrency and sending it to scammers. But scammers also impersonate businesses, government agencies and a love interest, among other tactics.

Investment fraud

Investment scams often promise that you can “make lots of money” with “zero risk” and often start on social media or online dating apps or sites. Of course, these scams can also start with an unexpected text message, email or call. And with investment scams, crypto is central in two ways: it can be both the investment and the payment.

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