BASICS
Cryptocurrencies Review – BTC vs. ETHJul 21
How to Avoid Cryptocurrency Fraud & Investment Scams
Cryptocurrency is defined as a digital asset that is used as a virtual currency and does not exist in any physical form. In fact, if you are interested in crypto nowadays, you are probably taking a big fraud risk. The world of cryptocurrency can be called the new Wild West; an unregulated world in which scams are flying high.
But the usual rules for preventing fraud also apply here. You should carefully review everything that you read on the Internet and check if they are real. Don't be fooled by deceptive ads and stay alert. Cybersecurity firm ESET issued warnings about increasing cryptocurrency scams.
These people are expert in using current events and trends in the agenda to trap their victims. They also did not delay taking action on cryptos, which is one of the most popular agenda items of 2020s. According to the FTC, between October 2020 and May 2021, Americans lost an average of $80 million (€71 million) due to the cryptocurrency scams. In the UK, this figure is much higher. According to police records, the victims lost over £146 million (€172 million) in the first nine months of 2021.
The reasons why scams are on the rise;
* There are very few regulations when compared to the traditional stock exchanges.
The intense media attention makes the crypto currency a suitable trap for phishing and scams.
* The ever-increasing cryptocurrency prices are attracting the attention of consumers who dream of getting rich quickly.
Some of the most common scams include:
Ponzi schemes: Named after Charles Ponzi, these scams make payments to the existing investors with the funds deposited by the new investors. In fact, there are no such companies or chains, only fraudsters get richer. Cryptocurrency is ideal for scammers, as they have always invented a new and ambiguous 'advanced' technology in order to attract investors' and get more virtual profits. It's easy to mislead data when money is virtual.
Fraudulent transactions: Scammers mislead investors with false information, convincing them to buy shares in cryptocurrency companies, for whom the markets have only little information. As a result, the price rises, and the fraudster receives a regular income, and the shares in the hands of the victim lose their value.
Fake ads featuring celebrities: Scammers hijack celebrities' social media accounts or create fake accounts related to celebrities. Thus, it encourages followers to invest in the companies they wish.
Fake exchanges: Fraudsters send emails or share social media posts promising access to virtual currencies found on cryptocurrency exchanges. But for this, first of all, the user must pay an entrance fee. Since there is no such exchange, the money disappears forever.
But the usual rules for preventing fraud also apply here. You should carefully review everything that you read on the Internet and check if they are real. Don't be fooled by deceptive ads and stay alert. Cybersecurity firm ESET issued warnings about increasing cryptocurrency scams.
These people are expert in using current events and trends in the agenda to trap their victims. They also did not delay taking action on cryptos, which is one of the most popular agenda items of 2020s. According to the FTC, between October 2020 and May 2021, Americans lost an average of $80 million (€71 million) due to the cryptocurrency scams. In the UK, this figure is much higher. According to police records, the victims lost over £146 million (€172 million) in the first nine months of 2021.
The reasons why scams are on the rise;
* There are very few regulations when compared to the traditional stock exchanges.
The intense media attention makes the crypto currency a suitable trap for phishing and scams.
* The ever-increasing cryptocurrency prices are attracting the attention of consumers who dream of getting rich quickly.
Some of the most common scams include:
Ponzi schemes: Named after Charles Ponzi, these scams make payments to the existing investors with the funds deposited by the new investors. In fact, there are no such companies or chains, only fraudsters get richer. Cryptocurrency is ideal for scammers, as they have always invented a new and ambiguous 'advanced' technology in order to attract investors' and get more virtual profits. It's easy to mislead data when money is virtual.
Fraudulent transactions: Scammers mislead investors with false information, convincing them to buy shares in cryptocurrency companies, for whom the markets have only little information. As a result, the price rises, and the fraudster receives a regular income, and the shares in the hands of the victim lose their value.
Fake ads featuring celebrities: Scammers hijack celebrities' social media accounts or create fake accounts related to celebrities. Thus, it encourages followers to invest in the companies they wish.
Fake exchanges: Fraudsters send emails or share social media posts promising access to virtual currencies found on cryptocurrency exchanges. But for this, first of all, the user must pay an entrance fee. Since there is no such exchange, the money disappears forever.
