GRAND RAPIDS, Mich. (WOOD) — A new twist on a typical scam is taking advantage of the growth in the online currency bitcoin.
“This is capitalizing on the moment, on the fiery streak that bitcoin is on, and in this example using it to scam people out of their capital,” John Masterson of the Better Business Bureau of Western Michigan said.
The BBB is broadcasting a notification about a Ponzi scheme-type offer that promises bitcoin returns that are too good to be true.
“If anything seems too good to be true, 99 percent of the time it is,” Masterson said.
INVESTED BITCOIN VANISHES
The scam operates like this: Investors buy bitcoin and invest it with the website Wedgecoin.com. The website ensures unbelievable returns. According to the website, a $10 investment will see a 130 percent return in just 24 hours and an investment of $1,500 or more will have a 300 percent return in just three hours.
Small investors would see the initial return, but larger investments would go unreturned, rather held by the web-based scammers.