The Chinese government has issued a notice against various frauds associated with the metaverse, Coinspeaker reported Friday (Feb. 18).

A notice by the Chinese Banking and Insurance Regulatory Commission listed four methods used to scammers acting as metaverse developers.

The most common scam is enticing investors with promises of integrating artificial intelligence and virtual reality, with the thieves vanishing after they get the capital.

Then there are “highly efficient play-to-earn projects,” in which fraudsters promise huge gains from gaming tokens.

Other schemes, according to the article, include “exaggerating” about metaverse real estate to drive up purchases.

The Chinese government said people should be cautious when buying into the metaverse and report any “dubious activities.”


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