Fraudulent Scheme exploits Name Similarity to Gate.io, Targets Investors with Stolen Identity of Mark Zinkula
MONTREAL – A new investment fraud, dubbed “Crypto-Gate,” is exploiting phonetic similarities to the legitimate cryptocurrency exchange Gate.io and utilizing a stolen identity to lure investors, authorities warn.The scheme, originating via social media platforms like Reddit, targets individuals with promises of high-return investments, ultimately leading to significant financial losses.
The fraudulent operation centers around a deceptive tactic: leveraging the similar sound of “Crypto-Gate” to mislead victims into believing an affiliation with the established Gate.io platform. Further compounding the deception, the identity of Mark Zinkula is being used without his knowledge or consent, representing a clear case of identity theft.
Reports indicate scammers are initiating contact through social networks,directing potential investors to WhatsApp groups where thay are pressured to deposit funds. Those seeking verification are met with evasive answers or accusations of distrust. A common tactic employed by the fraudsters involves falsely reporting initial gains to encourage larger investments, a technique known as “progressive climbing.” Similar schemes have resulted in losses totaling hundreds of thousands of euros for victims.
“The Crypto-Gate affair once again demonstrates the importance of verifying the legitimacy of online investment offers,” a recent report states. Authorities emphasize the critical need to independently confirm the existence of companies, licenses, and references before investing. Investigations have confirmed the lack of legitimate foundations for “Crypto-Gate” and the clear evidence of identity theft.
Individuals who have been contacted by suspected members of this group are urged to report the incident to the relevant platforms - Reddit, WhatsApp – and to law enforcement agencies such as postal police or the IC3 (Internet Crime Complaint Center) in the United States.
This case underscores the escalating risks associated with online investment and the necessity for vigilance and due diligence in protecting personal finances. ongoing discussions surrounding cybersecurity and clarity within the cryptocurrency trading landscape are crucial in combating such fraudulent activities.
