Is SoMo CREDIT Legit?
A legitimate crypto startup could have innovative technology or services that are market-disrupting and offer unique financial and social benefits. However, a company that never makes an actual product or service and is only out to make money by spreading lies is not legitimate. To learn more about the business practices of these types of scammers, look for critical issues in the company’s history, business plans, social media activity, and executive team members. Try using online search engines to see if the company has been sued for fraudulent practices.
Even if you meet a scammer face-to-face, you'll never know for sure that the “founding team” and “investment opportunity” they show you is fake.
Before you make a decision on whether to invest, you should do your homework by gathering as much information as you can. Although not all cryptocurrency startups have robust digital identities, they can display some basic information on their website. If the founder tells you that they’re waiting on legal approval from the SEC (Securities and Exchange Commission), remember that the SEC won’t approve cryptocurrencies
Cryptocurrency startups are notorious for driving up their own salaries until you start wondering whether your payment will actually be legitimate.
SoMo CREDIT reviews
Most of the problems plaguing this broker are technical problems that have caused clients to have difficulties sending bitcoins out. Here are some of the concerns that customers have brought to our attention:
- Software error.
- Unapproved account.
- Sudden difficulty in receiving funds.
- Refund not available.
- Website (SOPA site) not available.
- Technical problems in using interface (may cause the account to be deleted).
We recommend using bitcoin brokers with caution and to check the broker's past reviews, regulations, and terms of services; before you send bitcoins to any of these websites.
SoMo CREDIT has an average of only 2.7 out of 5 stars, based on hundreds of user reviews from within the Bitcoin community. The following are some of the most common complaints regarding this broker:
- The broker started scamming customers mid-transaction and tried to take the bitcoins with them; returned coins; took bitcoins, never paid out and lost all customers' funds; then attempted to scam other customers who threatened to contact regulators.
- A majority of customers refused to let the auction work for them and were either given bitcoins or left without being paid
- Depositing and withdrawing from the website was a pain.
SoMo CREDIT fraudulent operations
Tempted to use a fraudulent broker, you may be tempted by the generous commission payments offered by some brokers. But beware: Do your due diligence to make sure that the company you use is actually a licensed brokerage firm. Legit brokers should be listed with the US Securities and Exchange Commission. If the brokers are not listed, they are not as you assume and may be fraudulent.
Our manual analysis found that the legal disclaimer claims that the trading platform does not provide loans or provide binary options trading services. Legitimate brokerages do not require you to do anything to continue to use their trading platform, but hackers can take advantage of it by tricking you into opening an online account.
“They trick you into taking out the loan. The loan comes in and the person claims that you owe it to them. They charge you at least $300.00, and they can continue to upsell you if you want. You end up not having the money and they are demanding you send them more. This is very bad!”
In fact, if you purchase this platform, it will not be the first time you have purchased a loan product from this broker. Another important fact to keep in mind: Reputable companies do not take bitcoins as a payment method.
How to avoid scams?
Never lose money. Never wire money. This is even more important when trading bitcoins. Remember that you can lose $1,000 if your bitcoin exchange transfers your funds. Never sign over your bitcoins to a third party. Even if they are acting on your behalf, remember that they are not responsible for any losses that you may incur if they have failed to execute the transaction. Don’t let an email/text from a private individual fool you into opening a bitcoin account. If you have received an unsolicited text or email from someone trying to trick you into opening a bitcoin account, do not reply or call them back. Trust your gut. If the email looks suspicious, it probably is.
The commission you pay will be worth the product and the service you get. Be Clear About the Deposits. Do not use any websites that ask for upfront deposits, especially crypto deposits. This type of scammer puts their Bitcoins on an exchange and moves them elsewhere. Additionally, never deposit money from outside your bank account. Do not deposit or withdraw funds into your account unless you are 100% sure you are going to receive the bitcoins you bought.
Never use websites that ask for payments in cryptocurrency,
Keep your bitcoins safe
The beauty of the bitcoin trading business is that your bitcoins are yours to keep and spend. If you choose to open a bitcoin account, you can always buy, sell, and store the bitcoins in your own personal wallets. But there is a time when you might want to hold your bitcoins in a bitcoin wallet controlled by another person: while you are doing business with a third party. We can’t emphasize enough how important it is to keep your bitcoins in a wallet you control. You will need a wallet that allows you to take profits and keep your bitcoins safe.
While bitcoins are secure on a Bitcoin exchange, we don’t recommend keeping your bitcoins on a single person’s account. That’s not just because of security breaches, but also because it’s extremely risky. If you’re not using a reputable broker, then it’s especially important to keep all of your bitcoins on a hardware wallet. These devices securely store your private keys, which are needed to spend bitcoins. Only you have access to these keys, and there is no need for you to keep them stored in your web browser. That’s because even if a hacker gained access to your wallet, he or she wouldn’t be able to spend your bitcoins.
On the last note
Always make sure your broker is licensed in your state. To check out if a broker is licensed, check out http://www.fedreg.gov/bts/bts. We recommend contacting your state attorney general or the FTC to file a complaint. These resources will give you a great deal of information about any negative online reviews of a broker. Additionally, if you have a complaint about a broker to file with the SEC, please do so at www.sec.gov.
Some of the complaints we have fielded include reports of trading glitches and the inability to withdraw funds when someone attempts to use the service after a hack. And then there is that "broker fee" everyone keeps talking about. It is too bad that there are so many scammers out there because if they weren't, people would be spending more time looking for the next great investment instead of trying to protect themselves from fraud. In this case, it is also possible to buy a bitcoin with cash. Once a bitcoin is purchased, it is completely untraceable and doesn't show up on your balance sheet. Just be careful when you trade bitcoins.