Crypto Scams – Fake Crypto Gurus (FURUS)
Crypto and financial scams come in many shapes and forms. One of them are crypto gurus, or furus. Learn how you can identify them here.
An ad with a “successful trader or guru” offering to teach you how to “make it in the crypto markets”? Or someone approaching you via Facebook with a lucrative investment offer involving cryptocurrencies? The internet is plagued with fake gurus (aka FURUs) giving people their two cents on how to “generate a secondary income with crypto”.
No matter which site you’re on, there is always an ad that promises riches through crypto trading or investment even if you have zero experience at all. But can you trust these statements?
In this article we explain who these crypto Furus are, how they operate and what the signs are to spot one!
What is a crypto trading or investing guru?
A crypto trading guru is someone that usually claims he or she knows how to make a lot of money by either investing in or trading the markets. He or she probably offered you webinars that entice you with educational courses where he or she teaches you the techniques.
There are of course legitimate gurus offering their service and knowledge online, but how can you spot a Furu (read: fake gurus)?
In present times we can find them everywhere online – main social media networks (Youtube, Instagram, Facebook) or their own custom websites.
How to identify Furus
There are tell tale signs of crypto furus that you can almost immediately distinguish. If you see any of the indicators below, be aware:
- A supercar in the backdrop of their ads.
- Flashy lifestyle involving exotic cars, stacks of cash.
- Videos, Articles, and Posts claiming to know secret methods that can make you rich.
- The number one common point in all the Guru’s stories is that somehow they got tired of all their trading success and now they decided to share it with the world to make others rich.
- They talked about things in a very technical fashion to give you the illusion that they’re an expert.
- Claims of endorsement for someone influential?
Perhaps one of the most iconic videos I’ve watched was a Furu being asked the question: ”if you’re already a millionaire then why are you selling a course?”
Not surprisingly, the Furu had no come back on that question.
What do Furus usually offer?
Furus often have a variety of offerings that have been cleverly put together to make it seem like a legitimate product and/or services.
- Online Trading Courses
- Trading Signal Services
- Live Seminars
- Live Trading Sessions (with hidden account info)
Who are the favourite victims of Fake Trading Gurus (Furus)?
Unfortunately, most people that end up being scammed are everyday people. This is why we often recommend doing your due diligence, and conducting your own research (DYOR) before making any investment decisions.
When armed with knowledge, you’ll develop a more keen sense of awareness of potential scams out there.
How are Furus making money?
Their income comes usually from:
- Affiliate Programs with brokers or Initial Coin Offerings: they refer people to the brokers or new cryptocurrency projects and get commissions. Sometimes they even refer people to unethical brokers that destroy people’s lives, but these people don’t care as long as they make a commission.
- Course Income: they sell highly-priced courses that actually teach you nothing really valuable that you could end up finding everywhere online at a much better price or free.
- Expensive live seminars or classes: they group a bunch of people and “teach them how to trade”.
Take extra care to make sure their income isn’t your money!
How to avoid getting scammed by Furus
When something sounds too good to be true it probably is. Question yourself whenever you come across these type of phrases and promises:
- Secondary income.
- Live the life of your dreams.
- Be financially free.
- Make money from your laptop while traveling.
You’ll know when you see it. In which case – have all your alarm bells ringing!
Trading and investing in cryptocurrency is risky, money can be lost in seconds (especially if you don’t know how to manage risks). It’s not an easy way to make money.
Related: Read our guide on cryptocurrency scams and how to avoid them!
When encountering a crypto Furu
- Question any claims of guaranteed returns.
- If they claim to be a financial advisor and try to persuade you to invest, ask for their financial advisor license details
- Beware of “limited time” investment opportunities: Very few legitimate investments are going to be inaccessible next month or next year. If a Furu tries to rush you into making an immediate investment decision, you may be dealing with a scammer.
- Ignore any manufactured peer pressure or the fear of missing out!
When in doubt, you can also reach out to our help desk staff to inform us.
Reach out to us: Get help with Easy Crypto.
We wish you good luck and keep your crypto safe!
Further reading: Learn more about crypto safety by exploring our Hub.
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Disclaimer: Information is current as at the date of publication. This is general information only and is not intended to be advice. Crypto is volatile, carries risk and the value can go up and down. Past performance is not an indicator of future returns. Please do your own research.
Last updated October 11, 2022