Russian Crypto Scammers Go Offline: Central Bank Worried About Trend – According to a report from the daily Izvestia citing the Central Bank of the Russian Federation, financial pyramids and illicit forex dealers in Russia are increasingly focusing on providing crypto investment and settlement prospects.
In recent years, scammers have started building offices where they try to persuade potential victims to invest in virtual currency or offer services to get around government and international sanctions. Experts agree that face-to-face interactions are always more productive for that goal.
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They also warn against doing so because this can frequently result in losing money, either in fiat or in cryptocurrency. The report notes that since Russians’ access to international financial assets has grown increasingly difficult, the tendency of staying offline suggests that scammers are preparing for a greater demand.
Interest in crypto assets has increased as a result of sanctions put in place by the West in reaction to Moscow’s invasion of Ukraine and foreign currency limitations implemented by Russian authorities as a result. Many Russians have started purchasing bitcoin (BTC) and other cryptocurrencies, stablecoins, and digital currencies to transfer their money abroad or shield it from governmental controls.
The Bank of Russia’s data show that financial pyramids have been very active this year. The regulator found 954 such firms in the first half of 2022, as opposed to just 146 in the same time last year. That is an increase of more than six times.
Additionally, the number of people advertising investments in genuine or fake cryptocurrencies has increased. 537 entities, or 56% of the recorded fraudulent schemes, raised money using various digital assets or promoted investments in them.
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According to Russia’s central bank, fraudsters are taking advantage of how traditional financial institutions’ operations have been drastically altered by the sanctions, which are having an impact on investments in foreign assets and international settlements.
The CBR has loosened some of its limits on Russian citizens’ access to foreign currency, enabling banks to enhance the public’s availability to U.S. dollars and euros in cash. It’s not yet clear how the shift would affect interest in cryptocurrencies, which a recent survey indicates is still reasonably high in Russia.
