Fake Crypto Exchanges NZ | New Zealand’s Crypto Scam Guide (2024)

The cryptocurrency market is seeing significant growth, which has attracted increased interest and participation. Unfortunately, this also brings the risk of fake cryptocurrency exchange scams. These scams often masquerade as legitimate platforms, offering tempting deals or high returns to entice users.

Nic Turnbull
September 14, 2024

Warning! If you suspect you've been scammed or fallen victim to a cryptocurrency fraud, don't wait! Contact Crypto Consulting NZ immediately. Our team is here to help guide you through the next steps.

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What to do if you’ve been Scammed

If you’ve fallen victim to a cryptocurrency scam it’s critical to take immediate action. At Crypto Consulting NZ, we specialize in scam support services tailored to your specific needs. We’ll help you confirm if you’ve been scammed, guide you through documenting your case, and provide expert advice on what to do.

If its a Fake crypto Exchanges our crypto consultants can assist with every step of the process to ensure you’re informed and protected moving forward.

What are Fake Crypto Exchanges?

Fake crypto exchanges pose as genuine trading platforms but are actually fraudulent operations created to steal users’ funds or personal information.

These exchanges replicate the look and functionality of legitimate platforms to give the impression of trustworthiness. They lure kiwis with enticing features such as promises of high returns, but their primary intent is to defraud users.

Common Signs of a Bogus Crypto Exchange

In New Zealand, crypto trading platforms must comply with regulations set by the Financial Markets Authority (FMA) and Inland Revenue Department. Legitimate platforms are required to adhere to specific standards to protect customers’ investments, much like TradFi service providers.

These regulations ensure that cryptocurrency exchanges operate transparently and securely, protecting users from fraud and other risks.

Too-Good-to-be-True Offers

Fake Crypto exchanges often lure victims by making unrealistic promises, such as guaranteed high returns, “risk-free” trading, or exceptionally low trading fees. They may even use deepfakes of well-known crypto or tech figures to create fake endorsements and give a false sense of credibility.

The more exaggerated or unrealistic the promotions appear on a platform, the higher the chances that the exchange is a scam.

Non-Compliant with Regulations

In New Zealand, cryptocurrency trading platforms must comply with regulations set by the Financial Markets Authority (FMA) and Inland Revenue Department (IRD). Legitimate platforms are required to adhere to specific standards to protect customers’ investments, much like traditional financial service providers. These regulations ensure that exchanges operate transparently and securely, protecting users from fraud and other risks.

Fake Volume and Trading Activity

Some fake crypto exchanges in NZ falsely inflate their trading volume and activity to give the impression of liquidity and popularity. Given the anonymous nature of crypto, it’s relatively easy for these fraudulent platforms to generate fake transactions using smurf accounts controlled by the scammers.

If you notice high trading volumes on lesser-known exchanges, approach with caution and verify transaction ledgers to ensure the trading is real.

Poor or no Security Measures

Legitimate crypto exchanges prioritize user safety by implementing robust security protocols to safeguard funds and personal data. In contrast, fake exchanges typically lack proper security measures, leaving them vulnerable to hacking or enabling their operators to abscond with users’ assets without a trace.

List of Known Fake Crypto Exchanges

Reference: https://www.datavisor.com/wiki/fake-cryptocurrency-exchanges/

The List below outlines a few of the fake crypto exchanges.

List Of Known Fake Cryptocurrency Exchanges

I Texus Trade
Dartya
BravoFX
BIPPAX
Digi Coins
Primegroup.global
Safepalesa.com
Ethereum x corp
Lidcoin Trading Center
Mindstoneltd.org
Whitcoin Pro Exchange
X Coin Trading
FX Alliance Traders
Pinance.io
File Coins Foundation
HOO Tech Ltd
OS Option Exchange
Privmoney (Private Money)
GE Chains
DCEX Exchange
Sun Bit Proa
Stunwill Ltd
Poloina
Rudolf Stark Pro Station
Trusted Stations
Good-bookingline.com
bitcoinfied.com
legalcryptocoinstrade.com
Bitcoin-win.com
Bityard
us.gocoinoptions.com
The Big Mars
Tony Alin Trading Firm
Julysil
MT7 Coin
Dahua Top VIP (Dahuag VIP)
Micavhe.top
gmelaunch.com
Rhenium (Nodium)
Spotalertweb.com
Mantao Network
Bytobit.com
Atmos NOAH Cryptocurrency Investment Group
OpenSoil (Open Soil X)
CoinList Ro
Getbonusx2.com (getx2.net)
Crystal Linkz FX (Crystal Linkz FX Link Zen)
CoinWpro
Turbine Trade FideFX LTD (fiefx.cc)
Yo Bit Pro
Public Realm
Whitemax.us
Turtsgrupfk.top
100Ex
Coinegg
Bitcoin Vest Cloud
ExNow
Kenskr AI
Uniswap.LLC
Global tek Forex Trading
Nasdaqon.com
Amead Digital Currency Co. LTD
Coin Pro X US

How Can You Spot a Fake Crypto Exchange?

Verify Regulatory Compliance: Start by checking if the exchange is regulated by a reputable authority. Legitimate exchanges comply with regulations like AML and other requirements specific to their operating jurisdictions.
Review Exchange Transparency: Ensure the exchange provides transparent information about its team, company background, physical address, and regulatory status. Be cautious of exchanges that lack transparency.
Assess Security Measures: Confirm that the exchange has robust security features such as two-factor authentication (2FA), cold storage for funds, encryption protocols, and regular security audits.
Evaluate Trading Volume and Activity: Check the exchange’s trading volume and activity on reputable data aggregation sites. Be wary if the trading volume seems unusually high or if there are sudden spikes in activity.
Research User Feedback: Look into reviews, forum discussions, and social media posts from other traders about the exchange. Pay close attention to any complaints regarding withheld funds or poor customer service.
Examine the Platform’s Quality: Legitimate exchanges usually invest in user-friendly interfaces and robust trading functionalities. Be skeptical if the website appears poorly designed, contains grammatical errors, or lacks features.
Test Customer Support: Reach out to the exchange’s customer support system with questions or concerns. Legitimate exchanges typically offer responsive customer support through email, live chat, or ticketing systems. Slow responses or unhelpful support can be red flags.
Be Wary of Unrealistic Offers: Be cautious of exchanges making unrealistic promises, such as guaranteed high returns, extremely low trading fees, or exclusive deals for new users. If an offer sounds too good to be true, it likely is.
Watch for Phishing Attempts: Stay vigilant against phishing attempts from fake exchanges posing as legitimate ones. Be cautious of unsolicited emails, messages, or advertisements asking you to click on suspicious links.
Engage with the Crypto Community: Engage with the cryptocurrency community to gather feedback and opinions about the exchange in question. Platforms like Reddit, Bitcointalk, and social media channels can provide valuable insights from experienced traders.

Common Excuses Fake Crypto Exchanges Use to Withhold Your Funds

When users attempt to withdraw their funds from a fake crypto exchange, scammers often provide various excuses to delay or block the transaction. These excuses are designed to prolong the scam and convince the victim to send more money. Here are some of the common tactics fake exchanges use:

“Additional Verification Required”: Scammers might claim that you need to go through additional verification steps to withdraw your funds. This can involve sending personal documents or even paying a “verification fee.”
“Unpaid Taxes or Fees”: A popular tactic is to claim that you owe taxes or transaction fees before the funds can be released. These fees are often presented as urgent, pressuring the user into making more payments.
“Technical Issues or Delays”: Scammers may cite technical issues, such as problems with their payment systems or blockchain delays, to buy time and convince you to wait longer for your funds.
“Exclusive Offers to Reinvest”: In some cases, the crypto fake exchange may offer you exclusive deals or bonuses if you agree to reinvest your funds instead of withdrawing them. This is another ploy… beware….
“Account Freezing for Security Reasons”: Fake exchanges might freeze your account, claiming it’s for “security purposes” and asking for additional funds or information to unfreeze it.

If you encounter any of these excuses, it’s a major red flag that the exchange is fraudulent. Stop engaging with the platform and report it immediately.

How Fake Crypto Exchanges Steal Your Funds and Data

Fake crypto exchanges employ a variety of tactics to steal users’ funds and personal information. These scams often mimic the design and functionality of legitimate platforms, making it difficult to tell them apart. Here are some of the most common ways fake exchanges steal from unsuspecting investors:

Phishing: Scammers send emails or messages posing as legitimate exchanges. These messages often contain links to fake websites that request login credentials or private keys. Once obtained, scammers drain your wallet.
Fake Trading Platforms: After creating an account and depositing funds, users might see fabricated charts or fake account balances to give the illusion of trading activity. When you try to withdraw your funds, however, the exchange stalls or blocks the transaction entirely.
Data Harvesting: Scammers not only steal funds but also personal data, including IDs, addresses, and phone numbers. This information can later be used for identity theft or sold on the dark web.
Fake Fees and Charges: Scammers may demand additional payments or fake transaction fees to release “your funds.” These hidden fees are meant to further drain your finances before disappearing completely.

What to Do If You’ve Been Scammed by a Fake Crypto Exchange

If you’ve fallen victim to a fake cryptocurrency exchange, it’s crucial to act quickly. While the decentralized nature of cryptocurrency makes recovering funds difficult, there are steps you can take to mitigate the damage.

Crypto Consulting NZ offers scam support services to guide you through the recovery process. Here’s what you should do:

Document Everything: Save all correspondence, screenshots of transactions, and any relevant details about the scam. This information will be critical.
Alert Your Bank: If you’ve shared bank details, contact your bank immediately to flag any suspicious activity or halt future transactions.
Use Crypto Consulting NZ’s Scam Support Services: Crypto Consulting NZ specializes in helping victims of crypto scams by offering expert advice, guidance on documenting your case, and support through the process
Secure Your Devices and Accounts: If your personal data or login credentials have been compromised, reset all passwords, enable two-factor authentication (2FA), and scan your devices for malware.

Book a Consulting Session Today

18+ Years Of Combined Experience

Disclaimer: All content in this guide is intended for educational purposes only and should not be interpreted as financial advice. As an individual, you are entirely responsible for how you conduct your investments and manage your cryptocurrency interests. It is exclusively your own responsibility to perform due diligence and Cryptocurrency NZ recommends taking extreme care and caution with crypto and are not responsible for the outcomes, management, or oversight of your activities.