Fraud Protection
18 questions
Where do the payouts come from?
From the money of participants who join later, not from profits.
Which structural check is most effective?
Whether management and custody are separate and who holds the assets independently.
Why do such schemes only work with small assets?
Because with little trading, even small purchases move the price a lot.
What role does the rising price play?
It looks like proof that the story is true and strengthens confirmation bias.
What communication trait is a red flag?
Time pressure. Real opportunities aren't in a hurry.
What happens in a rug pull?
The makers pull out the deposited liquidity, and nobody can sell the token anymore.
Which contract traits are checkable?
Whether new tokens can be created, whether someone may change the trading rules or block sales, and who has special rights.
What doesn't an audit report cover?
It looks for technical errors. It doesn't check whether the makers are honest.
Why is selling a strategy a warning sign?
Because a working strategy earns more with the money put in, while selling it only grows with the number of customers.
Why do visible success stories tell you little?
Because with many providers, some are successful for several years by chance alone and become visible precisely because of that.
What structural problem do signal groups have?
The shared buying drives up the price for everyone who buys later, and whoever bought beforehand profits.
Which entity determines your protection?
The firm you sign the contract with. A sister company's authorisation doesn't protect you.
What are regulators' warning lists?
Free lists published by regulators of firms operating without permission. They're updated continuously.
What trait was central in documented collapses?
That customers' money wasn't held separately and no independent body looked after it.
What's the first step?
Stop transferring anything and call your bank immediately, because deadlines run for many ways of getting money back.
Why do recipient addresses matter for crypto transfers?
Because anyone can see where the money went. But only authorities can find out who the addresses belong to.
What characterizes the follow-up scheme?
Someone gets in touch again and offers to recover your money if you pay first.