The Chinese Banking and Insurance Regulatory Commission has issued a subtle warning to the public on the risks of frauds and scams associated with the burgeoning Metaverse space.
The warning details how the niche has become a new home for bad actors to perpetrate illicit activities to illegally raise money, duping unsuspecting individuals of their hard-earned money.
While highlighting the various methods that scammers use in the metaverse business, the official warning mentioned projects promising high high-tech integration, such as artificial intelligence and virtual reality support, saying they only come to lure investors into robbing them.
The warning identified that metaverse scams could also come in the form of play-to-earn projects, which often promise participants huge returns on their investment.
It stated that once such a project reaches a specific target, they abandon the project and run with people’s investments.
It further added that metaverse scams could also take the form of hype. In this situation, scammers will regularly talk about the metaverse project to give it false popularity and importance and force people to invest. An example of this case is the level of hype surrounding metaverse real-estate.
A translated version of the Office of Inter-Ministerial Joint Conference on Disposal of Illegal Fund Raising statement urged the public to be wary of such projects and report any suspicious activity to necessary authorities:
The fraudulent activities…
