Daily fraud update: 10th February

Chris Lee

US crypto payments service suspends bitcoin

A cryptocurrency payments service based in the US state of New Hampshire has removed bitcoin from its system.

In an unusual move, Anypay – which is based in the US state of New Hampshire – said that the world’s most famous cryptocurrency is “worthless for payments”.

Historically, bitcoin transactions were permanent once they had been placed.

However, this has changed in recent years, and it is now possible for bitcoin transactions to effectively be reversed, or “charged back”.

This is due to the “Replace By Fee” function.

According to Steven Zeiler, who is the co-founder of AnyPay, this makes bitcoin effectively useless.

It could, in theory, be used by dishonest customers who want to acquire goods and services before reversing the charge – but keeping the items.

In a filmed statement posted on the video sharing site YouTube, Zeiler described how he had had a “final revelation” about the issue.

“…BTC is indefinitely disabled and AnyPay will not support BTC payments going forward until further notice”, he added.

AnyPay is a growing platform, and Zeiler himself is a former employee of Ripple – the blockchain-powered payments service.

According to the firm’s website, it prioritises the needs of “crypto-spenders” when it comes to new merchants.

“By following the simple principle of letting crypto-spenders guide merchant adoption, Anypay has built personal relationships with hundreds of merchants on five continents and their dedicated user base”, it says.

Crypto fraud figures on the rise, says analysis

Analysis of the cryptocurrency fraud world has revealed that more than over $4bn worth of damage was done as a result of crime in the sector last year.

The analysis, which was carried out by Chainalysis in conjunction with US financial newspaper The Wall Street Journal, suggested that this was higher than the figures registered in both of the previous years put together.

In 2017 and 2018, the total figure in the end was $3bn combined.

The analysis also revealed some other trends about the dynamics of the crypto fraud world.

It suggested, for example, that 90% of stolen funds could be traced to merely six schemes.

The research, which was published in the Journal, also touched on specific cases.

One of these was the PlusToken scandal, which saw many people defrauded after committing cash to a Ponzi scheme which then took their money.

The article told the story of Seo Jin-ho, a man from South Korea who invested in the fraudulent scheme.

He was supposedly told by a colleague that he could make a return of 10% every single month.

Chainalysis, which is located in New York, often works with the Federal Bureau of Investigations (FBI) to monitor scams such as these.

It commented that Ponzi schemes such as the one used in the PlusToken scam were taking advantage of people’s lack of knowledge around crypto investments.

Chris Lee

Latest news

Cybercrime still on the rise – be wary of potential scams
While our attention may be drawn to the latest news regarding the COVID-19 pandemic or the Tokyo Olympic Games, cybercrime statistics continue to grow unabated in the shadows. Read more
How to Learn to Trade Unpredictable Summer Markets
Recent events in the financial markets have left traders and investors dazed and confused. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2011 Global CFD & FX Broker
Number One Broker
#2 ForexTB logoYour capital is at risk Founded: 2015 Global Forex & CFD Broker
Number One Broker
LOWEST FEES Visit broker
#3 Tickmill forex broker logoYour capital is at risk Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
#4 BlackBull MarketsYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
#5 Forex Broker Pepperstone LogoCFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker

    Forex Fraud Certified Brokers

    Vantage FX logo
    IC Markets Logo
    BlackBull Markets Logo
    Forex.com Logo
    LegacyFX Small Logo
    XM Logo
    AvaTrade logo
    skilling logo
    FXTM Logo
    Plus500 Small Logo
    HYCM Logo
    City Index Logo
    ATFX Logo
    OctaFX Logo
    Exness Small Logo