Cryptocurrency is an online trading system under which Bitcoin, Ethereum, Tether, Polkadot, and Dogecoin take place. Crypto-currency is an exchange of currency via an online computer network. There is no central regulating body. Instead, this practice chooses a decentralized approach to recording transactions and issuing new units.
In this blog, we target some significant cryptocurrency scams to understand the dos and donts in the current cryptocurrency market. Before we start, a brief introduction on cryptocurrency will be shared. As this blog aims to ensure that everyone should understand how the market is working these days.
What is cryptocurrency?
Cryptocurrency is a digitalized payment system that works independently without interference from banks and other government institutions. The transaction performs based on a peer-to-peer system. Whatever transactions take place are recorded in a public ledger called a blockchain. Cryptocurrency is funded in a crypto wallet. It is a digital wallet where investors’ money is safely stored. The first-ever cryptocurrency introduced in 2009 is Bitcoin. People have put a lot of trust in this currency as of now.
Cryptocurrency is a well-structured designed system where people can connect from different mobile applications. Although, there are inevitable cracks that increase cryptocurrency scams.
What is a cryptocurrency scam?
Several investors and novices participate in daily trading activities. However, the structure has some loopholes that result in these scandals. Cryptocurrency is a good business practice, but where there is money, there is a scam.
Characteristics of Cryptocurrency scam
A cryptocurrency scam is an unethical practice performed by a con artist. These scams are executed to steal money from people by distracting individuals’ mindsets. Scammers duped people in several ways. Some of the characteristics that will provide you a hint to observe such events:
- Fraudsters usually theft the official name of the brand or a government institution and contact you via email. The content is well-written, but it will be hard to recognize from the writing to a general man and famous investors. But they do attach a link in the email that is a crucial part of their plan.
- They have a list of potential victims. Some random person receives a text message, SMS, or email about some investment opportunities you haven’t asked for.
- Either a person or on any social media platform, you will receive a message stating that someone wants to pay you for cryptocurrency.
- These are the people around you who act as imposters. They pose as legitimate source and asks for cryptocurrency payments.
- Giveaway cryptocurrency scams are on a boom. It is a scam where the scammers imitate to be famous personalities such as celebrities. They use social media platforms to perform ill activities. Recently Elon Musk impersonators have stolen $ 2 million in this scam.
- These scammers’ network is so huge and secure. It is like they have allotted a person in each place so they cannot miss out on anything. A romance scam is one of them. It is the easiest way to fool people. It is reported that a minimum of 20% of people are losing money under this scam.
Cryptocurrency scams are performed under the nose of the public; victims feel helpless and miserable in such cases. Here are some of the tips to examine unusual activities.
Danger signs of crypto scams
Well, we have let you know some of the characteristics of cryptocurrency scams. Now is the time to sense the unusual activities and how they are performed.
- They will flood impressive offers in front of you, but it is all a lie.
- Cryptocurrency is evident in the policies; they do not entertain the word ‘Guarantee.
- The link the fraudsters provide is fake if it does not start with Http.
- They create a need for urgency
- Sometimes, they forward threatening messages
- Fraudsters will ask you to share personal details and bank account information.
- They will ask you to fulfill their pending payments.
- Con artists also ask about unsolicited favors to accomplish.
Besides this, there are other devious tactics too. But for many years, scammers have used the same old methods. We just wanted our readers to be alert if they get such messages. Of course, you can report it as a cybercrime, but sometimes people move to some authentication and reliable websites such as Financial Fund Recovery for self-rescue.
An unethical successful performance of Crypto Scam
Let’s understand the success rate of these cryptocurrencies scams:
- Crypto scams have been rosed at 516% from 2020 to 2021.
- The age group of 20 and 30 years of investors is on the radar of these scammers.
- Nearly $ 8 billion of cryptocurrency has been theft by fraudsters in 2021.
- In October 2021, approximately 45000 people lost cryptocurrency assents equivalent to $ 1 billion.
- Some small scams have gone unreported. Hence, the actual amount reported median loss is $ 2600.
Tips on investing safely to avoid being a victim
- There is no shortcut to cryptocurrency trading. It needs research and experience. Consultants will never contact you out of the blue. If it is happening, it is fishy.
- It has a peer-to-peer function, so everything performs from app to app. There is nothing to pay for cryptocurrency. If a person asks, it is a fraud.
- There is nothing urgent while doing the trading. It is a personal call. However, if you feel someone is creating a need for urgency, report and block them.
- Cryptocurrency official terms and conditions do not use words like guarantees and promises. It is the easiest way to eliminate fraudulent activities.
- Do not be afraid to report any suspicious activity. If someone is threatening you, play smart. Record the calls or take screenshots. Act like one competent citizen.
We have served a complete package on the characteristics, red flags, and safe ways to work out cryptocurrency trading. Although, some of the scammer’s activities are hard to determine, such as phishing scams. Apart from this, everything is sorted and easily understandable. Cryptocurrency is legit and ethical. It is an excellent platform for a remarkable economic contribution. But always try to become a prying person as the scammers do. Play safe, and stay tuned!