The Uruguayan Department of the Interior is taking measures to warn investors about the potential dangers of investing in scams. The campaign is called “Fake Coins – Cryptocurrency Scams” to inform the public about the most common types of crypto frauds.
Uruguay educates about Crypto-Related Scams
Governments are increasingly becoming more aware of the fact that some parties use crypto to perpetrate different types of scams. The Ministry of the Interior of Uruguay has warned of this and presented a new campaign called “Fake Coins – Cryptocurrency Scams”, launched in partnership by El Paccto (two EU-Latam joint organisations that fight organized crime)
According to the FAKE COINS document
The project aims to raise awareness about the most common scams in cryptocurrency operations. This will allow citizens to identify the source of these scams and the tricks used by fraudsters.
This campaign includes participation by police departments from 17 countries, including Argentina and Chile, Colombia and Costa Rica, Ecuador and El Salvador, Spain and Guatemala, Honduras and Mexico.
Warning Signs and Regulations about Cryptocurrency Scams
To show Latam audiences how a scam differs from legitimate cryptocurrency projects, the project makes use of several cryptocurrency projects and fake token name. The campaign categorizes these scams according to their focus. These include scams by impersonation or simulation, frauds through seduction, pyramid recruiting scams and false e mail promotions.
With the popularity of cryptocurrency in Latin America, Brazil, Venezuela, and Argentina, the problem of Latam-based scams has increased. This type of scam is actually one of the reasons that some jurisdictions have established cryptocurrency regulations.
Brazil is a country where many citizens have been affected. The newly passed crypto law amends the penal code in order to include crypto crimes. These crimes include “fraud in providing services of virtual assets or securities” and can result in imprisonment of up to six years, as well as fines.
For more information, the Ministry of Uruguay recommends that you visit the website of the project. You can also report any suspected scam cryptocurrency projects.
