Look out, the SEC Released a Fake ICO Platform
The crypto sector has been a widespread subject around the world in recent months due to the risks it brings. The U.S. Securities and Exchange Commission has found a new way to educate users about online fraud.
The U.S. SEC has launched a fake ICO campaign to promote the so-called HoweyCoins, which according to the description, it “touts an all too good to be true investment opportunity“. The announcement was made yesterday, 16th May. Those who will invest in Howey token will not support theft of funds. Once the investment is made, users will be redirected to an informational page.
“HoweyCoins utilize the latest crypto-technology to allow travelers to purchase all segments without these limitations, allowing HoweyCoin users to buy, sell, and trade in a frictionless environment – where they use HoweyCoins to purchase travel OR as a government-backed, freely tradable investment – or both,” the fake website wrote.
The concept of this educational project comes as a result of online scams involving the crypto sector. The U.S. designed the fake website in order to understand whether users are able to identify a fake crypto project or not.
According to the website, investors will earn 1-2% returns, a frequent promise made by scams. The platform also reveals the list of members and Twitter testimonials, as well an imitation of real false platforms.
The SEC has explained in a statement that the platform also includes a “white paper with a complex yet vague explanation of the investment opportunity, promises of guaranteed returns, and a countdown clock that shows time is quickly running out on the deal of a lifetime.”
Owen Donley, chief counsel of the SEC’s Office has confirmed that the website was designed taking into account the real-fraudulent cases, stating that:
“Fraudsters can quickly build an attractive website and load it up with convoluted jargon to lure investors into phony deals …But fraudulent sites also often have red flags that can be dead giveaways if you know what to look for.”
The project is an educational one, so you will not be at risk.