Russian Citizens Lost $30,000 to Cryptocurrency Scammers

The growing popularity of mining cryptocurrencies is prompting people to join this burgeoning industry. On the other hand, such users can also easily fall victim to scammers.

Thus, Russia is facing an increase in the activity of scammers offering users equipment or premises to set up mining farms. In the last 3 days, 16 residents of the Irkutsk region have contacted the police claiming that they have been scammed. The total damage amounts to about 2.5 million rubles ($30,000).

The scam is widespread. Fraudsters register fake accounts on various resources. Then they offer mining equipment for sale or premises for rent. But once a victim transfers the funds, they disappear with the transferred money forever. In fact, such a scheme is far from new. It has been used since the early days of online shopping. The scammers sell fake goods and then disappear with the victims’ money.

For this reason, the police recommend thoroughly researching the merchant before making a purchase and avoid paying in advance. Paying cash on delivery allows the customer to inspect the goods before actually spending any money.

The other side of popularity

Recently, the Irkutsk region has become a center of the Russian cryptocurrency mining industry. As CoinIdol, a world blockchain news outlet, has previously reported, the region attracts miners because of the availability and cheapness of electricity.

However, the popularity has its downsides. Much of the mining takes place in secret. People install mining equipment and hide their energy consumption, so they do not pay for electricity at all. This has led to a drastic increase in shadow consumption and concerns from the government. The State Duma is currently working on a framework to legalize mining of cryptocurrencies.

Cryptocurrency mining offers huge profits. No wonder it is so popular among citizens. Nevertheless, people should thoroughly research and raise their awareness about the industry to avoid losses due to lack of education or being wary of scammers.

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