China’s internet conglomerate Tencent has launched a WeChat applet that serves as a financial risk inquiry and reporting platform on June 5^th. The applet mainly targets at exposing pyramid schemes, especially those newly-emerged but already rampant crypto scams.

It is often difficult for potential victims to tell swindles from good projects. Tencent’s move can help warn other potential victims whilst allowing victims to vent some steam.

There are two categories – confirmed scams and suspected scams, with information of complaint number and media exposure provided. Over 20 scamcoin projects and platforms confirmed by police or reported by media have been exposed on the platform including OneCoin, FuturenET, PEB, CAC (literally China-Africa Coin), Wuxing Coin, Dragon Coin, MFCCLUB, U Coin, GX Coin, AGR, etc. Suspected scams include AAA gaming token, ACL, FIS, GGP, ECO, LCF, ASI, EV, LCF, LEO.

Everyone who has access to internet could be able to report frauds on the applet with evidence provided. After filing complaint, the applet would prompt that the reported information would be used to assist regulatory authorities in cracking down these internet pyramid schemes and financial frauds.

Prior to that, Tencent also revealed that cryptocurrency scams had accounted for 7% of the total pyramid schemes of 2017 in a previous report. It is believed that this year the number is still rampantly increasing.

Currently there are more than 1,400 different cryptocurrencies available on the internet and the crypto mania still keeps going. Lacking in regulations, it is difficult for victims falling into the crypto pitfalls to get their hard-earned money back. Regarding this, the platform rolled out by Tencent acts as a filter for uninformed crypto investors.