Bitcoin scams have risen in parallel with the public interest in crypto investments.
According to the Financial Conduct Authority, the amount of cryptocurrency held by the typical investor increased by more than 15% between 2020 and 2021. However, fraudsters of all sizes have taken advantage of investors’ fear of missing out on this hot new industry.
Others prey on the less informed, hoping to take advantage of their ignorance and dupe them into handing up their cryptocurrency. This can occur in a variety of ways, and recognizing it can be not easy.
What are some of the most well-known crypto scams?
According to a new study from Bolster, over 400,000 cryptocurrency frauds were recorded only last year.
That’s a 40% rise over the previous year. That figure is anticipated to increase by another 75% this year, costing consumers tens of billions of dollars.
So, what are the most common bitcoin disadvantages? Then there’s the deceptive giveaway. A fake ad promises double your money back if you contribute, using photos of Bitcoin millionaires Tyler and Cameron Winkelvoss without their consent. Another exploits Elon Musk, the creator of Tesla, as a ruse, promising to double your money.
Others are fraudulent initial coin offerings or ICOs. A legal initial coin offering (ICO) will raise funds for a new cryptocurrency firm. However, fraudsters build a fraudulent firm, create internet buzz, and persuade investors to invest. According to published estimates, investors lost $375,000 due to fake ICOs.
Other common scams include:
- Websites that are fakes
- Apps that aren’t real
- Scamming emails
- Tweets or other social media posts that aren’t so great
- Scams involving giveaways
How to Buy/Sell Crypto Without Getting Scammed
Do not be overly eager to make earnings or interest, thoroughly investigate the platform before investing your funds. If the admin asks for your private keys to repair a problem, it’s a red flag, and it’s your signal to suspect that the admin is posing as you. Nobody will ever ask for your personal information.
As a result, conduct comprehensive research, rely on only reliable sources for information, and be wary of misinformation on social media. If you can, talk to an expert before investing or run your plans past a buddy who has dealt with cryptocurrency for longer than you. These are some simple measures you may take to avoid being a victim of cryptocurrency fraud while selling or buying crypto.
What to do if you’re a victim of a cryptocurrency fraud
It may be tough to recover your funds if you have been a victim of a crypto scam. If someone is found guilty of committing a cybercrime against you, the court may require that they compensate you. Regrettably, the fraudster is rarely apprehended in these sorts of crimes.
However, If you are a victim of a crypto scam, you should take the following measures:
- If you have lost money as a consequence of bitcoin fraud, you should contact the authorities as soon as possible to report it as a crime.
- You can regain all of your missing bitcoin cash by engaging one of the top crypto recovery professionals available.
- You have a good probability of retrieving your cryptocurrency if you fall victim to fraud. Contact the appropriate blockchain regulatory and investigation body.
What to look for in a cryptocurrency exchange?
As the popularity of cryptocurrency rises, more individuals may wonder what platform they should use to start buying and trading these assets. Users have various levels of cryptocurrency and investing expertise; therefore, there are hundreds of things to look at across exchanges.
Regardless of your level of knowledge, there are six factors to consider when selecting a bitcoin exchange:
- Your country’s availability
- Available cryptocurrencies
- Fees for trading
- Reputation
- Security
- User interface and user experience
3 best trips/tricks to avoid crypto fraud
The greatest approach to protect yourself, like with any financial choice, is to:
• Never take something at face value.
• Keep your curiosity piqued.
• Before making any financial transactions, always conduct your research.
Use only large and licensed crypto exchanges, such as BEX Bank, Kraken, Coinbase, Binance
Final Thoughts
Even in the well-established and well-regulated centuries-old financial exchanges, scams and frauds are prevalent. Due to its unregulated nature, the anonymous world of cryptocurrency poses an even greater danger.
Finally, the investor should avoid being duped out of their hard-earned money. Before making any investment, look for non-existent teams, exaggerated profit predictions, and ambiguous business strategies.
