The Bank of Portugal (BdP) issued a cautionary alert on Monday regarding fraudulent activities targeting individuals through crypto asset wallets. These scams are primarily associated with purported investments in cryptoassets, including cryptocurrencies, and typically involve unsolicited telephone calls, emails, or messages, often communicated in English. In these schemes, scammers masquerade as representatives of entities claiming to manage cryptoasset investments or offer assistance in recovering allegedly lost cryptoassets.
The banking supervisor highlighted that these fraudulent attempts aim to create an illusion of legitimacy by informing the victim that they possess a digital wallet in their name with a positive balance, albeit in an inactive state. The victim is then misled into believing that failure to activate the wallet would result in the loss of funds supposedly held within it. This deceptive tactic preys on individuals’ trust and lack of familiarity with cryptoasset operations.
The Bank of Portugal emphasized the importance of remaining vigilant and cautious when receiving unsolicited communications related to cryptoassets. To bolster defenses against such scams, individuals are advised to exercise skepticism and refrain from disclosing personal information or transferring funds without verifying the legitimacy of the parties involved. Additionally, it is crucial to seek guidance from recognized financial institutions or regulatory authorities before engaging in any cryptoasset-related transactions to mitigate the risks of falling victim to fraudulent schemes.
In light of the increasing prevalence of scams targeting individuals in the cryptoasset space, the advisory issued by the Bank of Portugal serves as a timely reminder to maintain a proactive and discerning approach when encountering offers or requests related to cryptoassets. By staying informed and adopting precautionary measures, individuals can safeguard their assets and financial well-being from potential fraudulent activities in the evolving landscape of digital finance.
