China’s banking regulator warns investors against metaverse frauds

cnbctv18.com:

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.The metaverse is a virtual space encompassing multiple technologies like virtual reality, augmented reality, and blockchains. In the metaverse, people can do most activities done in the real world like shopping, socializing, and participating in events, among other things through their virtual avatar.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.Also read: IMF chief says unbacked cryptos no match for well-designed central bank digital currenciesChinese 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 reality, artificial intelligence, and other advanced technology. These buzzwords are like music to investors’ ears.