28 million rubles lost in a year: Unveiling how cryptocurrency investment scams step by step

The experience of a 46-year-old woman in Kursk, Russia, profoundly exposes the dangers of cryptocurrency investment scams. During a scam that lasted over a year, she not only invested all her savings but also sold three apartments, a car, and gold bars, even took out bank loans and borrowed money from acquaintances, ultimately losing up to 28 million rubles. This is not an isolated case; Kirov Region has also reported similar incidents. Why are these scams so easily successful?

Typical Scam Tactics

Step 1: Building Trust

The victim met a man claiming to reside in an Arab country through instant messaging apps. This step seems casual but is actually carefully designed by scammers. Cross-border identities, stranger profiles, and the privacy of instant messaging all create conditions for subsequent scams.

Step 2: Creating Bait

Scammers lure victims with promises of high investment returns, a classic method in cryptocurrency scams. In an era of low interest rates, promising returns far above market levels is highly attractive to those seeking to grow their assets.

Step 3: Inducing Action

The scammer guides the victim to download a specific app for “cryptocurrency investment.” This app is likely a fake trading platform, displaying false account balances and earnings data, convincing the victim that their investment is increasing in value.

Step 4: Draining Continually

Under the guidance of the scammer, victims keep adding investments. From savings to asset liquidation and even loans, scammers step by step lead victims to invest more. Each “investment” shows fake growth, reinforcing the victim’s confidence.

Why Victims Fall into Traps

In this case, the victim’s trap process reflects several pitfalls in investment psychology: the sunk cost fallacy (having invested so much, cannot give up), confirmation bias (only seeing false growth data), greed (temptation of high returns). Scammers exploit these psychological weaknesses, gradually pushing victims into the abyss.

Industry Risk Warning

The prevalence of such scams warrants vigilance. Russia has reported multiple similar cases, indicating this is not an isolated incident but a systemic scam industry. Scammers often operate in well-organized groups, including scriptwriters, technical staff, and fund transfer personnel.

From quick reports, scammers’ characteristics include:

• Using false identities and cross-border setups to reduce detection risk
• Creating fake apps to simulate authenticity
• Deleting chat records to destroy evidence
• Disappearing immediately after funds are exhausted

The high success rate of this pattern is because victims are often ordinary people seeking to improve their lives through investment, and scammers’ understanding of human weaknesses often surpasses that of legitimate investment institutions.

Key Takeaways

This case highlights several clear warnings:

First, the promise of high returns in cryptocurrency investments is a red flag. Legitimate investments do not guarantee risk-free high yields; promises far exceeding market averages are usually scams.

Second, be highly cautious when strangers actively recommend investment opportunities via social media. This is a typical scam opening.

Third, being asked to download unofficial apps for investing carries extreme risks. Legitimate exchanges have official channels and real-name verification mechanisms.

Finally, once you start adding investments, liquidating assets, or borrowing money to invest, you have entered a deep trap of scams. At this point, you should stop immediately and seek help, rather than continue to invest.

For the cryptocurrency industry, the frequent occurrence of such scams also reflects certain realities: information asymmetry, lagging regulation, and insufficient user education. As the industry matures, protecting investors from scams should be the highest priority.