GainBitcoin Scheme lured the investors by promising them handsome returns in a short period; they gained the investors' trust and got what they wanted.
The world of cryptocurrency and bitcoin has achieved a great height over the years, and they have also seen classic Ponzi schemes built on betrayal and lies. One of such notorious cloud mining scams was called GainBitcoin.
The Scheme was simple; it offered 10 percent per month for 18 months if an investor invested in GainBitcoin. The whole mechanism was based on investors bringing referrals into the system and forming a pyramid of investors who provided funds for paying to early-round investors.
Funds recovery service provider of online scams, Cyber-Forensics.Net, says:
"Cryptocurrencies like bitcoin are one of the best ways for investors to invest in a scheme and make a handsome profit. But the tricky part in this process is recognizing the Scheme, whether it is a legit one or a fake one. Trusting a scheme and investing in it without personal research can cost an investor a huge loss."
What Was An Infamous GainBitcoin Scheme?
GainBitcoin scheme began as a Multi-Level-Marketing (MLM) scheme in 2015, and the scammer ran a GainBitcoin fraud scheme promising monthly 10 percent returns on their investments.
Then scammers often presented a marketing scam and lured investors into sending bitcoins in exchange for higher returns. But once the scammer received the cryptocurrency, they were nowhere to be found.
How To Spot A Scheme Similar To GainBitcoin?
Timothy Benson, a fraud recovery specialist at Cyber-Forensics.Net, says, "One should not make any decision guided by greed. Before getting involved in such schemes, deep research is a must." Some important points are mentioned below to spot schemes like GainBitcoin:
- At the basic level, abnormally high returns promised by the fraudsters should serve as a red flag for investors.
- One should check the credibility of the company.
- Do personal research on the net before taking the next step.
- Offering commission to investors for referrals.
- Promising high returns at low risk.
- Fraudsters may use complicated ways to explain how their business model works to confuse investors.
How To Protect Oneself From Such Schemes?
- Beware Of Promise Of Higher Returns:
Any scheme promising unnatural high returns should be considered with caution.
- Track Record Of Promoters:
Before investing in a scheme, an individual should research and find out if they have a clear image of delivering promises.
- Unknown Company:
The most important point, before even thinking about investing in a scheme, an individual should do their research about the company on the internet or on social media. If there is no reliable information on the internet, it is better not to get involved.
- Take Informed Decision:
One should check for the record of the schemes, financial information, management team, and corresponding regulations. Never take a quick decision under pressure or because the Scheme is too good. Do not trust anyone blindly in financial matters
How To Report A Scheme Like GainBitcoin?
Suppose an individual comes across a scheme and suspects that something about the scheme does not make sense. In that case, they can report it to the Federal Trade Commission(FTC) or any other commission with the following information and documents.
- A description of the scheme.
- Details of the people involved in the collection of money.
- Contact information of the company or agency.
- Any other relevant information, documentation, or proof that one may have.
An individual who has been the victim of such scams can also report to a cryptocurrency recovery services provider like Cyber-Forensics, a team of professionals who know how to hunt down such fraudsters.
How Can A Fund Recovery Service Help?
As Cryptocurrency continuously climbs the step toward success, scammers worldwide try to get some hefty profit by scamming innocent investors. These scammers are highly intelligent online geeks who can easily manipulate an individual. To hunt these scammers, one has to match their level with them.
A fund recovery service provider, Cyber-Forensics.Net consists of individuals who have been in this industry for quite a long time. They put their years of experience and knowledge together to help the victim by bringing them justice and their lost fund.
Cyber-Forensics.Net is committed to providing the most accurate tracing service for victims of online scams. Cyber-Forensics.Net empowers and simplifies the process of tracking down the cyber-criminals and assists in recovering the funds and creating an atmosphere for a negotiated settlement. For more information, please visit https://cyber-forensics.net/.