[Interview] What to Do If You've Been Scammed? Quickly Dial the World's First Anti-Fraud Consultation Hotline 165

Previously, we introduced a special feature on fraud prevention, covering various internationally renowned cryptocurrency scams, including some local scams in Taiwan. Therefore, in a recent interview with the "165 Anti-Scam Consultation Hotline" of the Criminal Investigation Bureau, readers can gain a deeper understanding of "how to identify common scams" and "the follow-up procedures after falling victim to a scam."

Common Scams in Virtual Currency

In Taiwan, scam groups have been operating for years. Since the rise of virtual currencies, scams packaged as virtual currencies have emerged. These scams often target victims through platforms like Facebook groups, LINE, Telegram, and dating apps, promoting slogans such as "guaranteed profit" to lure the public.

According to Officer Hong Guolun from the Criminal Investigation Bureau's "165 Hotline":

Factors such as economic downturns, low wages, and increased unemployment due to the pandemic have led to a mindset of seeking quick profits, resulting in a rise in scams in recent years.

Characteristics of Virtual Currency Scams

Officer Hong pointed out that scams involving virtual currencies in Taiwan are still relatively uncommon, with most cases involving transactions in New Taiwan Dollars rather than cryptocurrencies. These scams often use exaggerated claims of "high profits, low risks" or employ tactics like falsified data, videos, and fake websites to create a sense of urgency for investment, exploiting the "Fear of Missing Out" (FOMO) emotion among the public.

A reader once reported a scam case involving "OceanChain." The reader met a woman (scammer) through a dating app, who introduced the investment project "OceanChain." The scammer even gave the reader Bitcoin for free to purchase the rising OceanChain. After experiencing easy profits, the reader decided to loan money to buy Bitcoin, but the website where the Bitcoin was transferred, which claimed to trade OceanChain, soon shut down, and the reader couldn't contact the scammer anymore.

Modern scams constantly evolve. The mentioned case deliberately used the name of an actual project, OceanChain (OC), ranked 2846 on CoinMarketCap. Although it appeared to be an exchange, it was actually a fake website that lured victims with Bitcoin gains, a rare tactic.

Preparing to Report Scams

If you realize you have fallen victim to a scam, you can report it at the nearest police station or contact the 165 Anti-Fraud Consultation Hotline. Prepare the following information:

• Personal identification
• Screenshots of relevant conversations
• Details of money transfers
• Wallet transaction details

Officer Hong mentioned that providing mechanisms, advertisements, and most importantly, legal currency remittance records of the scammers, would assist in future judicial proceedings. In cases involving domestic cryptocurrency exchanges, the police can cooperate with the operators to freeze the scammers' assets.

Legal Consequences of Virtual Currency Fraud

Due to the diverse types of fraud crimes under Taiwan's Criminal Code and the Financial Supervisory Commission's current classification of virtual currencies as valuable "virtual commodities," sections 339 to 341 of the Criminal Code should be applicable, with sentencing varying based on each case.

For example, under general fraud crimes, individuals who deceive others with fraudulent means to gain unlawful ownership of property face imprisonment of up to five years, detention, a fine of up to five hundred thousand NT dollars, or a combination thereof.

Officer Hong also mentioned trends in investigating virtual currency fraud:

Rise of Online and Social Platforms

"The internet is more dangerous than the streets," Officer Hong remarked, noting the increasing use of virtual currencies in combination with pyramid schemes and the widespread use of online social platforms, targeting a younger demographic for scams, shifting away from the traditional perception of scams only involving older individuals.

Borderless Nature of Cryptocurrencies

For example, with Bitcoin, transactions do not require intermediaries or banks, making it difficult to trace. Many international projects confirmed as scams remain untraceable and their assets cannot be frozen.

Regulatory Uncertainty

The unclear position of virtual currencies domestically, lack of specific regulations, and the complexity of blockchain technology may lead to lenient sentences for fraudsters. Officer Hong believes that despite the high learning curve, establishing specialized teams for technology-related crimes and enacting regulations to govern virtual currency operators are essential.

Officer Hong emphasized at the end of the interview:

The 165 Hotline is the world's first anti-fraud hotline, even sought after by Chinese law enforcement for advice. Its full name is the "165 Anti-Fraud Consultation Hotline," abbreviated as 165 Hotline, serving as a crucial line of defense against fraud. He urged the public not to wait until they realize they have been scammed to call; any hint of doubt is welcome to seek consultation with the 165 Hotline. For those considering purchasing virtual currencies, it is recommended to choose reputable platforms like ACE Exchange, BitoEX, and MaiCoin, which collaborate with the 165 Hotline to prevent and combat crimes, protecting their own interests.

National Police Agency, Ministry of the Interior 165 Anti-Fraud Network:
https://165.npa.gov.tw/

Facebook Page "165 Anti-Fraud Promotion":
https://www.facebook.com/165bear/