Fraud Risk Assessment: Cryptominingfarm

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  • Rated 1 stars
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  • Cryptominingfarm
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  • Published on:
  • Last modified: December 7, 2017
  • Legitimacy
    Editor: 1%

Cryptominingfarm ( was launched in September 2014 providing Bitcoin cloud mining services from the Thailand. The company’s legitimacy has been evaluated based on the items listed below. Every individual item has been checked for the presence of obvious red flags or warning signals. If these are present, an explanation detailing what triggered them has been included. A detailed description of the reasons to evaluate each of the included items can be found below the table.

Phantom Richesflag-iconCryptominingfarm slams you in the face with "daily guaranteed profits" upon entering the website.
Source Credibilityexclamation_warningCryptominingfarm claims it is part of a bigger business with over 8 years of experience in telecommunications.
Social Proofthumb-up-iconN/A
Reciprocityexclamation_warningUsers will get 15 KH/s for registering.
Guaranteed Returnflag-icon"Guaranteed profits" are a primary feature of this service.
High Return / Low Riskflag-iconBesides a fixed income per day, Cryptominingfarm also increases this income by 5% each year. The websites features a table that shows that as a result, the mining income at Cryptominingfarm will be almost 500,000 times the income of a legitimate service in 15 years' time (as increases in difficulty will normally lower the income per GH/s).
Overly Consistent, Positive Returnsflag-iconCryptominingfarm pays a fixed (guaranteed) rate of 0.90 USD per day, seemingly unaffected by price or difficulty changes.
Downplaying Risksflag-iconThe guaranteed returns were already mentioned, and to make this more credible Cryptominingfarm adds that this guarantee is coming from its Telecommunication and Photovoltaic power station Project profits. This is an interesting story for those willing to believe that legitimate businesses can survive by giving away their income, but otherwise it's a really bad explanation.
Hardware Equipment
Public Mining Addressflag-iconNo
Pictures of Mining Equipmentflag-iconNone
Secretive or Complex Equipmentflag-iconThe website doesn't include a single mention of any actual mining equipment. Not even generic terms like "data center" are mentioned. "The business model involves the designing and service about Network security", what is that even supposed to mean?
Website Availablethumb-up-iconYes
Website Registration was registered September 17, 2014.
Website Designflag-iconThe website includes little to none information. The terms and conditions even may be one of the shortest ones ever seen.
Grammar on Websiteexclamation_warningThere is not a lot of text on the website, but what is there is downright horrid (see Secretive or Complex Equipment).
Payments Optionsexclamation_warningOnly Bitcoin is accepted in order to provide the owner with sufficient anonymity.
Service Disruptions & Unbusinesslike Conductflag-iconThe lack of terms and conditions (see Website Design) result an absence of any legal basis for doing business.
Contact Informationflag-iconContact information is provided, but lacks consistency (see Verified Address).
Verified Addressflag-iconCryptominingfarm provides the following official address:


The website is, however, registered at:

126 Ladpraw 110 yak2 ladprew Road wangthonglang

The latter address was also used to register the following websites (for the same owner): (suspended) (suspended)

The mentions yet another address:

149/3 Rachamanka Rd, A.Muang
Chiang Mai Thailand 50200

Lastly, the official business registration includes the address:


In short Mr.Phimongkon Thaophiban appears to be operating a number of different services, at various locations, of which several have already been suspended. This may indicate a serial scammer.
Verified Ownerflag-icon"Mr.Phimongkon Thaophiban" is the official owner, but any other information on this person cannot be found.
Business Registrationflag-iconThe website features a certificate (number 0503551005341), but the details don't match with the company website (see Verified Address).
Independent Auditsexclamation_warningNone
Total Flags: 16 (3 Warnings = 1 Flag)

Note that items with a warning instead of a flag indicate that these could occur at a legitimate company. For example, legitimate companies will normally try to persuade you into buying their products. Multiple warnings will, however, still trigger a flag. A description for the listed items is provided below. This list is meant to assist with identifying obvious scams, and therefore does not provide any guarantees that a company is truly legitimate.

Phantom Riches
The most common tactic used by fraudsters is called “phantom riches”. By dangling the prospect of wealth such as “big payoffs”, the scam artist tries to get you to stop thinking logically.

Using the fear of missing out, fraudsters create a false sense of urgency with statements such as “last chance” or “only so few available”. This causes people to agree hastily, before even having the opportunity to think about what they’re doing.

Source Credibility
Persuasion is more likely when the source presents itself as being credible, expert and trustworthy. Common tactics used by scammers to make themselves look legitimate include using fake websites or hacked emails and pretending to be someone they are not. Alternatively, sources can also be external with claims such as “Warren Buffet has already invested in this”.

Social Proof
Fraudsters take advantage of herd behavior by creating the illusion of consensus or social proof that the investment is legitimate with claims that “everybody is already doing it”, or referral programs in which members encourage their friends and associates to invest as well. This automatically triggers something in the head that says: “if everybody [or someone from the inner circle] wants it, it must be good”.

A business is likely to receive far more of our trust when it provides a lot of free value, because of the rule of reciprocity which causes us to tend to feel obligated to return favors after people do favors for us

Guaranteed Return
All investments carry some degree of risk, so a guaranteed profit is a clear red flag. A valid question would be why an organization would try to sell such a scheme instead of using it to get rich themselves.

High Return / Low Risk
Like a guaranteed return, a high return / low risk investment opportunity also defies the common risk-return relationship. The best advice is an old one: “if it sounds too good to be true, it probably is”.

Overly Consistent, Positive Returns
Cryptocurrency markets are among the most volatile markets, hence the performance of any related product or service is also expected to fluctuate.

External Risk Insurance
The fraudster may present some external risk insurance for the investment in order to add to its credibility. In reality, insurance is only seldom acquired and guarantees typically lack substance. Dummy companies are often used to act as the guarantor or insurer.

Public Mining Address
A cloud mining company must have a public cryptocurrency address in order to participate in the mining process. There is no reason for a legitimate company not to disclose this.

Pictures of Mining Equipment
Cloud Mining companies should be able to provide some pictures of the products they are selling besides any textual descriptions.

Secretive or Complex Equipment
Even in the world of cryptocurrencies one should be skeptical about special competitive advantages without any proper disclosure, or when the information is incomprehensible or incomplete. Too often only the positive elements are accentuated.

Website Available
Considering the importance of  domains and websites in the internet age, there is almost no reason for a legit company not to have one.

Website Registration Details
Very few scam websites survive longer than one year, so domains are generally registered for just one year unless otherwise required for the specific domain. For the same reason, websites created less than one year ago should be considered suspicious.

Website Design
Amateurish, cluttered and disorganized websites can point to a scam as many scam sites use text and images from legit websites and other sources which may not work together very well.

Grammar on Website
Many scammers have limited English proficiency.

Payments Options
Even though cryptocurrency payment options are logical for a cryptocurrency company, it is also very convenient for scammers as the recipient essentially remains anonymous. The same goes for services such as Western Union and Moneygram. Hence a lack of alternative payment options should still be considered a warning signal.

Service Disruptions &  Unbusinesslike Conduct
Especially Ponzi scheme promotors will encourage participants to “roll over” their investment. These schemes are not very fond of investors cashing out, which may lead to difficulties receiving payments and a non-responsive or difficult to reach customer service.

Contact Information
Legitimate companies have very little reason not to list their contact information.

Business Verification
First, you should never hand your hard-earned money over without knowing where it is going. Second, you should do a background check to avoid handing it to a known scammer. Be weary of people without an online identity. Scammers will typically try to hide their identity or conceal their true identity to avoid being easily discovered.

Independent Audits
Audits certainly do not root out every instance of fraud, but auditors do have a responsibility to detect errors or fraud in the company’s financial statements.

Comments (4)

  1. Moses ade February 13, 2018
  2. Armando July 2, 2018
  3. Armando September 15, 2018
  4. russs January 28, 2019

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