The Texas Land Securities Board (TSSB) has issued a warning on March 23 about crypto scams that have emerged in the wake of the COVID-nineteen pandemic.

The study refers to different types of scam, amidst which are those related to crypto investments that promise high returns in the midst of the coronavirus crisis.

Coronavirus-related scam methods

Among other scams, ane of the most common is called "pump and dump." The sceme consists of fraudsters who, based on penny stock purchases, try to boost prices by sharing "positive" information that turns out to be faux.

The method is to create fake news about companies that take allegedly found a cure for COVID-19. The TSSB highlights that fraudsters try to "capitalize on fear", so the current coronavirus pandemic ways they're in their element.

Regarding existing scam methods, the Texas country regulator warns the following:

"Fraudulent investment offerings ranging from precious metals to real estate to complex stock market strategies are offered as a supposed hedge confronting stock market place crashes or some other economic calamity."

Other U.s. regulators such equally the Commodities Futures Trading Committee had issued alerts about fraudsters wanting to take reward of the coronavirus contingency to profit from information technology.

Cryptos considered equally loftier-chance assets by the Texas watchdog

In the same find, investors are brash to cheque the Texas Investor Guide 2022, which was previously reported by Cointelegraph on January 14.

Cryptocurrencies were included in the report as one of the main threats to investors. The Texas state watchdog warned that crypto is a high-adventure investment and requires conscientious scrutiny.

Also, the Texas Investor Guide 2022 states that investors must determine some basic facts about the company they are dealing with, in add-on to identifying their actual physical location before making business with them.

Latest crypto scams

Cointelegraph reported on March 20 that the U.S. Securities and Substitution Committee froze the assets of Meta 1 Coin, an alleged crypto scam backed by a quondam country senator which promised investors high returns of up to 224,923%.

2 Canadian nationals were likewise jailed in a U.S. federal prison house on March 18 for stealing virtually 23.two Bitcoins in a scam via Twitter during 2022.