As scammers checker we take feedback from clients, do our own research and expose all dishonest traders in the market. We just found out that AltReserve are actually scammers in the cryptocurrency space. They employ various strategies to deceive and exploit unsuspecting individuals, capitalizing on the lack of regulation, technological complexity, and high-risk, high-reward nature of crypto trading.
AltReserve employ the use of both Ponzi Schemes and Pyramid Schemes
A Ponzi scheme in crypto is a type of investment scam where returns are paid to earlier investors with the capital from new investors, rather than from profit earned by legitimate investments. A pyramid scheme, on the other hand, involves recruiting people who, in turn, recruit others to create layers of contributions that feed the top layer. Both schemes usually promise high returns with little or no risk. To enhance this, AltReserve often use social media, fake endorsements from celebrities, or testimonials to lure victims. As long as new investors keep joining, early investors get paid, which further entices others.customers should be wary of investment programs promising guaranteed high returns, especially if they lack a clear and legitimate business model as AltReserve.
Pump-and-Dump Schemes by AltReserve
AltReserve artificially inflate the price of a low-value cryptocurrency (pump) through exaggerated claims and coordinated buying. Once the price surges due to the hype, they sell their assets at the inflated price (dump), leaving unsuspecting investors to bear the losses. They usually create hype through social media, Telegram groups, or private forums. By orchestrating large buy-ins at a particular time, they drive up demand, luring more investors who don’t want to miss out on the apparent rise. As the price skyrockets, they sell off their holdings, causing the price to plummet and leaving other investors at a loss. Potential clients should avoid unknown or obscure coins being aggressively marketed & be cautious of communities urging rapid investments without clear reasons for growth.
Use of fake Cryptocurrency Exchanges and Wallets
Fake exchanges and wallets are fraudulent platforms designed to mimic legitimate cryptocurrency services to steal users’ funds or personal information. AltReserve create websites or mobile apps that look like real crypto exchanges or wallets. When users deposit funds, they either steal the funds directly or uses phishing techniques to capture private keys or passwords for more scamming reasons. AltReserve also also entice users with lower fees or attractive features. Clients are advised to verify the authenticity of an exchange or wallet before using it. In addidtion, they should research thoroughly, look for reviews, check for an SSL certificate, and be cautious of sites without strong social media or community presence such as AltReserve.
AltReserve Phishing Attacks
AltReserve’s aim is to steal a user’s private keys or login credentials to their cryptocurrency wallets or exchanges. They send emails, messages, or even set up fake websites mimicking legitimate platforms, luring users into entering their personal information. Their phishing sites closely resemble real exchanges and ask users to log in with their credentials, which they use to access their actual accounts.
Use of Fake Initial Coin Offerings (ICOs) and Token Sales
An ICO is similar to an initial public offering (IPO) in the stock market, where companies raise capital by selling tokens instead of shares. AltReserve create fake ICOs to lure investors, often promising significant returns once the project takes off. They create a website, whitepaper, and sometimes even a fake team for a project that doesn’t exist. They then promise early investors access to valuable tokens, which will supposedly appreciate in value once the project launches. Once they gather enough funds, they disappear with the money.
Use of Malware and Ransomware Attacks by AltReserve
Malware and ransomware are malicious software programs designed to gain unauthorized access to devices or systems, often to steal private keys or other sensitive information. AltReserve distribute malware through emails, websites, or even compromised apps. Once installed, this software can capture keystrokes, take screenshots, or access files. Ransomware attacks specifically lock the user’s files until a ransom, often in cryptocurrency, is paid. AltReserve clients report having their files encrypted until they make Bitcoin payments for it to be released to them.
Use of Social Media and Celebrity Impersonation Scams by AltReserve
AltReserve impersonate popular figures or influencers in the crypto space, often promising giveaways or guaranteed returns to lure followers into sending funds.They create fake social media accounts of well-known personalities, often promising to double the cryptocurrency anyone sends to a specified address as part of a “giveaway.” Victims who send funds to the address, however, never see their money again. Customers should be skeptical of any celebrity or influencer promising crypto giveaways or returns. Always check for the blue verification mark on social media profiles, and remember that real influencers don’t ask for crypto payments to participate in giveaways.
Use of fake Airdrops and Free Token Scams
Airdrops are often legitimate marketing tools where projects distribute free tokens to increase interest. However, AltReserve exploit this by creating fake airdrops to gather private keys or require “gas fees” before transferring tokens, which they pocket.Victims are often asked to provide personal information or send a small amount of crypto to qualify for the “airdrop.” AltReserve then keep the gas fees or use the collected information to hack wallets.
CONCLUSION
AltReserve are scammers; they do so by Ponzi Schemes and Pyramid Schemes & using Phishing Attacks to steal a user’s private keys or login credentials. They make use of Social Media and Celebrity Impersonation Scams to entice clients, then use Malware and Ransomware Attacks to steal private keys or other sensitive information. They also use Fake Initial Coin Offerings (ICOs) and Token Sales to increase interests & also use fake Cryptocurrency Exchanges and Wallets to steal users’ funds or personal information.
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