Bitcoin Scams are becoming an every-day thing, but when con artists start using fake celebrity endorsements to promote fraudulent software people tend to notice it. Such is the case with the new Bitcoin Up software which is currently being promoted very aggressively by a variety of affiliate networks specializing in cryptocurrency schemes. Savvy internet marketers have decided to illegally use the name and reputation of the Duke and Duchess of Sussex in order to endorse what seems to be an illegal trading software which offers an easy way to generate “over $1,200 per day”. Does that sound real to you?
Bitcoin has been gaining popularity with new as well as more traditional investors. We even see financial icons like Jamie Dimon who have discounted digital currencies in the past but have since changed their minds. Bitcoin also tends to draw in a lot of media hype due to its decentralized nature and the fact that a few individuals such as the Winklevoss twins have become millionaires after investing in cryptocurrencies.
There are many types of crypto scams such as Ponzi Schemes, HYIP’s, and Pyramid Schemes. But in this specific case we are talking about a CFD (contract for difference) scam. It’s no surprise that Facebook has banned CFD advertising on its platform due to its “deceptive nature”. This also serves as a clear indication that if you are a novice in online trading and have little or no experience, you are exposed to a myriad of get-rich-quick schemes. These schemes are promoted by affiliate networks or media agencies which refer paying clients, and it’s the actual CFD brokers which accept them. In professional terms this type of compensation scheme is referred to as revenue or profit share and is very commonly used in the Forex and gambling industries. In many cases the promoters receive a commission which is significantly larger than what their client’s initial investment is.
This is because Forex traders invest substantial amounts of money on average, so the brokers are more than willing to pay hefty commissions in order to acquire new customers, even if they lose money on the short term.
People tend to believe celebrities or high-profile individuals. The reasons for this vary, but in general celebrities are perceived to be more trustworthy so it’s not uncommon to see fake endorsements used in a variety of niches such as the health industry, in nutritional supplements, and of course in Forex or CFDs.
The first rule of thumb is always “if it’s too good to be true it usually is”. Secondly, if you are unsure or hesitant about joining a certain program or offer try asking a friend or relative. In most cases the answer you will receive will be unbiased and provide you with the information you need in order to make a decision. Finally, always do your research. In most cases the information is out there, you just have to make sure to look for it in the right places!