On this post, we will take a closer look at job scams and the world of crypto currencies, and how this developments or changes can impact the future of crypto casinos.
As big as the opportunities in the digital era might be, at the same time, fraudsters will find a lot of soil to proliferate. Recently, a fraud targeting job seekers using cryptocurrencies has been reported.
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This article narrates the story of Omar Al Selk, 22 years from the UK, who fell prey to an advanced job scam that leveraged attraction toward cryptocurrencies and desperation among the unemployed.
Omar's Story: A Dream Job Turns into a Nightmare
Still sulking from the loss of his job as an Amazon delivery driver, 22-year-old Omar Al Selk was particularly keenly feeling the sting of unemployment. He mindlessly scrolled through TikTok when a glimmer of hope appeared – a “no experience required” ad.
With mounting bills and a dream to drive a lorry, Omar decided to take a punt. This was an innocuous ad that would prove to be the passport to an almost convincing scam.
Days later, a message materialized on WhatsApp from an alleged Clickaine recruiter, a Czech marketing company. His offer sounded enticing: Omar could be a “data provider user” and earn as much as £4,650 a month, plus commission, for just an hour of work daily.
While the promise raised initial skepticism, this assurance of financial security was too strong. Omar went through a short online training session and found himself part of a WhatsApp group loaded with what was described as colleagues of his.
Their tasks? Clicking through pop-up windows on their laptops. A rather mundane activity, supposedly in service of boosting the rankings of those apps. The pay structure further whetted Omar's optimism: he was promised his salary in installments, with commission on each completed assignment.
But then came a new wrinkle: his salary wouldn't be paid in pounds but in Tether, a cryptocurrency pegged to the US dollar. To obtain his payment, Omar was required to open a crypto exchange. Unsuspecting, he did so on Crypto.com and was ready to grasp his newfound financial security.
Initial promises sounded somewhat auspicious. Omar was asked at first to make small deposits in cryptocurrency before each task, with an assurance they would be returned with his commission.
Even better, he managed to make around £200 in those first days. But soon the initial small deposits ballooned. The “recruiter” demanded increasingly larger sums before Omar could participate in his “tasks.”
Desperate for the promised income and increasingly entangled in the web of deceit, the mistake Omar made was to borrow money from family and friends. Tragically, his trust was misplaced.
The promised payments never came. Left with a staggering £6,000 debt, Omar's dream of a new career as a lorry driver lay shattered. His GoFundMe campaign reflects the brutal reality of a fraud victim through the desperation of job seekers and the novelty of cryptocurrency.
The Rise of Crypto Scams: A Digital Wild West
What was once a nook of the financial world, cryptocurrencies have exploded. With that kind of rapid growth comes another financial option that is quite appealing to scams.
According to Statista, residents of the US lost about $208 million through cryptocurrency payments in impersonation scams of government agencies and companies during 2023.
Compared to a mere $18 million in 2020, this figure shows how grave a threat these frauds have become. There are many forms of cryptocurrency scams. The most common form is impersonating popular people or organizations.
There are cases where they create fake social media profiles or phishing emails claiming to be from celebrities, government agencies, or reputable companies. These frauds promise investments, giving away things to lure them into revealing personal information or sending cryptocurrency.
The other common type of crypto scam involves the Ponzi scheme. In a Ponzi scheme, scammers promise incredibly high returns on investments.
Instead of generating profits for the investors, money obtained from new investors is used to pay returns to prior investors. This gives rise to a pyramid effect. Eventually, the scheme collapses if there are not enough new investors.
Cryptocurrency scams are particularly appealing to fraudsters because of their anonymity and volatility. The anonymity in cryptocurrencies makes it very difficult for law enforcers to track scammers, and the volatility in cryptocurrencies may result in the generation of profits by use of price manipulation techniques upon deceiving investors.
The growing number of investors in cryptocurrency is another reason that makes it so attractive to scammers. The more the number of people interested in cryptocurrencies, the higher the potential for scams.
Crypto Casinos and the Risks
The projected online casino market globally is set to grow 5.56% from 2024-2029, reaching a market volume of US$46.04bn in 2029. This growth will come from greater gravitation toward crypto casinos due to their promise of anonymity, speedier transactions, and better returns. Still, this relatively new sector does not come without its risks.
While Omar's case happened to be with a fictitious marketing company, the growing popularity of cryptocurrencies and online casinos brings one question to mind: Are these scams going to become the next frontier for cybercriminals?
The answer, unfortunately, would likely be yes. The similarities are a bit too uncanny. Online casinos make it a point to advertise themselves with catchy promises of free cash and fast cashout times.
With the inherent anonymity of cryptocurrencies, besides their relative novelty for most people, they create a very ideal environment for scammers to conduct operations. Imagine a scenario where people are lured into online casinos under the name of one of the top crypto casinos, with the pretense of “risk-free” crypto gambling.
At first, they may ask for a small deposit to “test the waters”; after this, they would be asked to make subsequent large deposits so they could access the “special bonuses” or “guaranteed wins.”
Of course, the money would disappear into untraceable crypto wallets, leaving the unsuspecting victims with financial ruin. Other factors are that the virtual casino is not duly regulated and instability in cryptocurrencies.
Final Words on Crypto Casinos
The risks of these emerging sectors cannot be overlooked. Knowing some of the probable pitfalls that may exist and taking due precautions will help people safeguard themselves from becoming victims of crypto casino scams. Be vigilant, research & verify, understand risks, and, diversify investments.
All stakeholders, including consumers, regulators, and industry players, have to act in concert to avoid scams and ensure a safe and fair environment. Staying informed and taking steps proactively will help us chart the future responsibly and securely for this sector.
