Watch Out for the New Cryptocurrency Scam: New Century
As the digital landscape evolves rapidly, so do the scams that fraudsters use to deceive unsuspecting victims. A good way to stay ahead of the game is by monitoring what’s happening overseas, as scams discovered in one region often make their way to others a few months later.
A new cryptocurrency scam hit the UK this past fall, and it’s a warning for people everywhere. The scam revolved around an app called New Century, which claimed to be an “e-commerce order negotiation platform with millions of members” and promised significant payouts to users who purchased cryptocurrency through the app.
How the Scam Worked
New Century, posing as a UK-based company, used Facebook ads to attract job seekers looking for quick and easy cash. The app promised users the opportunity to earn extra income by buying cryptocurrency, but in reality, the payouts were nonexistent.
Although the amounts users were asked to invest were relatively small, withdrawals rarely worked. If users tried to withdraw larger sums, their requests would remain “pending” for over two weeks. Complaints about missing funds were met with bans from the platform.
The Truth Behind New Century
It was eventually uncovered that New Century, which claimed to be part of the British marketing agency Ogilvy Group, was actually based in East Asia. The cryptocurrency addresses the app used had received hundreds of thousands of pounds worth of cryptocurrency but had not paid out a single penny to its members. Multiple WhatsApp accounts were also found to have been used to lure victims.
While the scam was detected and shut down in the UK, New Century has since rebranded itself as an “Amazon subsidiary” (though Amazon has confirmed it has no connection). This means it’s likely to reappear in North America, possibly under a different guise.
Stay Wary of Scams
The key takeaway here is to remain cautious of any app or platform that promises significant payouts in exchange for an initial investment. If it seems too good to be true, it probably is. Always verify the legitimacy of any platform before making financial commitments, especially when it involves cryptocurrency. Keep an eye out for red flags like unverified claims, promises of high returns, and lack of transparency.