Crypto is money and where money is, fraudsters are attracted As the value of the coin market continues to appreciate, fraudsters are pulled irresistibly to it as they strive to get a cut of the eye as we shall see from XrayTrade, a scam exchange that lures users with the promise of free funds.
There are thousands of ways that cybercriminals steal money from people. You probably know a number of them. What you may not be aware of is assisted exchange withdrawal scams. This is a progressively common type of scam that crooks are using to steal cryptocurrencies from uninformed people who are lured by the prospect of free money.
What is Xraytrade?
This is a site that is so basic that an experienced person in the digital asset field should not be deceived. But there are many that are not versed in how the crypto industry works and may easily be fooled into cooperating with the owners or operators of this “exchange”.
The site claims that it is a crypto listing, low fee exchange where traders can trade comfortably. They also stated that cryptocurrency and blockchain projects can be listed on the platform.
You may find it interesting that the site claims that it makes it easy for users to receive and send cryptocurrencies but there are no other details about the operators and owners of the exchange. This means that sending or depositing your cryptocurrency in this site is akin to giving them to ghosts.
A Fake Chart
There are no active trading charts on this exchange, In fact, what it hosts on its site is a dummy Ethereum/BTC chart that does not reflect real-time data of the coin market. This is the only chart on the exchange. That is, if you visit its Live Trading page a hundred times, you’ll see this same chart,
One would wonder how an exchange, any exchange, would host a fake chart that does not connect to a live feed on its site and still claim that it is in the business of exchanging funds for users. There is a reason for this which we shall find out in a moment.
What is An Assisted Exchange Withdrawal Scam?
In this type of scam, the fraudster contacts a potential victim through any medium such as email, forum chat or social media. They propose a business in which they claim that they have funds stuck in an exchange due to one reason or the other. There are many reasons they could give such as:
- Lack of country support
- Suspension of country support
- Language barrier
- Traveling out of supported country
- Uncooperative exchange support
- And so on…
However, they proceed to present evidence to the person that they plan to scam by showing them that they actually have some funds stuck in the exchange. This may be a snapshot showing the balance they claim to have in the exchange.
Since the balance would usually be a lot of money, they promise the person that they would share the funds if retrieved. It is as simple as signing up with the exchange and having the fraudster send the funds to your own wallet in the exchange, then you take your share and forward the rest to their wallet outside the exchange.
But there is a catch…
When you sign up at the exchange, you would be confronted with the exchange’s demand of making a minimum deposit before you would be permitted to make withdrawals. The fraudster who is actually the person behind the exchange may actually send you the fund in your new account at the exchange.
Let’s say they sent you $7000 in ETH, and you’re expected to make a deposit of $200 before you could withdraw. If you make the $200 deposit, they would demand for more until you’re frustrated or realize that you have just been scammed. This is how assisted withdrawal scams work. There are thousands of fake exchanges such as Xraytrade.com.
Why Would Anyone Be Deceived?
The reason people are deceived has always been the same. These include:
- Lack of information
- Willingness to help strangers
- The desire to make quick money
- And more…
The Securities and Exchange Commission (SEC) stated in its advisory that:
The SEC’s Office of Investor Education and Advocacy (OIEA) urges investors to check the background of anyone selling or offering them an investment. No matter how good an investment may sound, verify that the person is currently registered or licensed and check his or her background by using the free and simple search tool on.
In other words, If you know nothing about someone promising you free money for little or no work, you should be wary. If someone has issues with an exchange, there is no basis to demand that you help them make withdrawals unless they have stolen the fund or breached an agreement associated with the contract, in which case their account would have been penalized by the exchange.
Always use your initiatives, especially when strangers contact you online when you never solicited for such contacts. You can see that the reason why Xraytrade didn’t care to make any charts is that it was not built for traders or people buying and selling. Its target is to lure the persons with free money and deceive them into making some deposits with the hope that they would make some free money. Eventually, those that are convinced lose their funds to the fraudsters behind such sites.
However, bear in mind that this is just a poor example of an assisted exchange withdrawal scam. Some fraudster may actually host more convincing exchange-like sites. This is why you should always do some background checks on the sites where you send your digital currencies for trading or any other business.