China’s banking and insurance regulator has issued a statement warning people about scams and frauds related to the metaverse.
The metaverse “is more attractive and deceptive, and participants are prone to property damage,” the China Banking and Insurance Regulatory Commission said in a statement on its website.
There has been a boom in metaverse projects in the last couple of months. It almost seems like a new metaverse platform is launched every other week. And with things moving so fast, several investors are jumping on the metaverse bandwagon due to fear of missing out on emerging technology. It’s a sentiment that is easily capitalized on by fraudsters.
Chinese authorities have noticed increased scams and frauds around various metaverse projects. Malicious actors rob people of their money using fake projects and promising lucrative returns.
The statement issued by the regulator aims to educate investors regarding such scams. It provides detailed descriptions of several methods used by the fraudster to dupe investors of their hard-earned cash.
The first and most common scam is where fraudsters pitch fake metaverse projects that involve augmented reality, virtual…
