Cryptocurrency investment scams
Skip navigation. Cryptocurrency enthusiasts congregate online to chat about their shared passion. All of this plays right into the hands of scammers. They blend into the scene with claims that can seem plausible because cryptocurrency is unknown territory for many people. Many people have reported being lured to websites that look like opportunities for investing in or mining cryptocurrencies, but are bogus. They often offer several investment tiers — the more you put in, the bigger the supposed return.
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- Be wary of cryptocurrency “investment” scams
- Crypto scams: How to spot, avoid and protect your money while investing in cryptocurrencies
- Over £27 million lost to Bitcoin and other investment scams
- The ‘rug pull’: crypto investors lose $4b in new scam
- 4 Common Cryptocurrency Scams and How to Avoid Them
- Beware of cryptocurrency scams
- What To Know About Cryptocurrency and Scams
- York police warn about cryptocurrency investing scams
- Prince Harry and Meghan Markle being used to promote crypto investment schemes in fake scam adverts
Be wary of cryptocurrency “investment” scams
By Aaron Raj 24 November, Crypto scams continue to be a big problem in the industry today. As cryptocurrencies are unregulated, crypto scammers are making huge profits, by luring victims into investing their funds and making the most out of it. In fact, increasing crypto scams are part of the reason why some governments have limited or banned crypto trading. Some countries are now looking to implement more regulations on crypto trading to not only protect users but also reduce crypto scams.
In Asia, both China and India have been making headlines for crypto scams, with China officially announcing a ban on crypto trading last month. Meanwhile, India has become a hotbed for crypto frauds, with more users showing interest in crypto trading.
The subcontinent is currently investigating its largest crypto scam involving bitcoins. The Monetary Authority of Singapore continues to warn people that cryptocurrencies are volatile and highly risky investment products unsuitable for retail investors. Interestingly, Singapore also sees itself as a crypto hub in Asia some day. Just as any investment scam, a cryptocurrency scam involves criminals stealing money from people who think they are investing in digital currency.
As most crypto assets and services are not regulated by financial regulators, the funds are not protected, compared to other regulated investments. This means, if a crypto scammer cons a user into investing their funds, the is no possibility of the funds being able to be recovered at all.
And because genuine cryptocurrency trading can offer high value in returns for some users, there has been a mad rush into the industry in recent times. A recent example of a major crypto scam is the Squid Game token.
The Netflix show has already been making headlines around the world and scammers also thought this would make a good scam. And they were right. The BBC reported that Squid, which marketed itself as a play-to-earn cryptocurrency , had its price soaring by thousands of percent. But, users were criticizing it as they were not allowed to resell their tokens.
Today, crypto scams are pretty much like social engineering attacks, whereby the scammer targets gaining personal information, especially security authentication codes for transactions.
According to a report by Sophos, scammers are now combining romantic lures with crypto scams. Another example is in Malaysia whereby a businessman lost RM, after being duped in a crypto scam introduced by a friend he met on social media. Well, fortunately, there are ways to detect and avoid crypto scams. However, at most times, users tend to ignore the facts and just go for the investment. In any case, here are three ways to avoid crypto scams.
The reality is though, cryptocurrencies are becoming mainstream in society. Not only are more companies enabling crypto payments, but the adoption of crypto in society is also increasing. The only question now is, will society be vigilant enough when trading and investing in cryptocurrencies. By Aaron Raj.
Aaron Raj Aaron enjoys writing about enterprise technology in the region. He has attended and covered many local and international tech expos, events and forums, speaking to some of the biggest tech personalities in the industry.
With over a decade of experience in the media, Aaron previously worked on politics, business, sports and entertainment news. Insights Latest Popular Topics. Crypto Scams: Win some, lose some.
Increasing number of crypto scams have led to countries tightening crypto regulations Crypto scammers using social media to get trick their victims. As cryptocurrency is unregulated, funds lost through crypto scams are not recoverable.
Crypto scams: How to spot, avoid and protect your money while investing in cryptocurrencies
This article was first published on CityAM on 10 November To read the CityAM article, please click here. As central banks around the world strive to counter the effects of Covid in their respective economies, prospects of rapid inflation have led investors to believe that crypto assets, could be a good hedge going forward. With such success, investors have not been the only ones trying to take advantage of these developments.
Over £27 million lost to Bitcoin and other investment scams
Investment scams are one of the many ways criminals try and steal your money. These scams are becoming increasingly common and can take a variety of forms, so it's really important you know how to spot them. If you are considering an investment be sure to confirm the firm is regulated. It could pay dividends if you spot a scam before parting with your money. Cryptocurrency is a digital asset that can be traded or exchanged online to buy from people or companies who accept this form of payment. Cryptocurrencies work using a technology called blockchain. Blockchain is a decentralized technology spread across many computers that manages and records transactions, rather than by a centralised authority. Cryptocurrency investments are often made via currency exchange platforms.
The ‘rug pull’: crypto investors lose $4b in new scam
Investment scams are one of the many ways criminals try and steal your money. These scams are becoming increasingly common and can take a variety of forms, so it's really important you know how to spot them. It only takes a few moments to complete the ScamSmart investor questions but it could pay major dividends if you spot a scam before parting with your money. Cryptocurrency is a digital asset that can be traded or exchanged online to buy from people or companies who accept this form of payment. Cryptocurrency investments are often made via currency exchange platforms.
4 Common Cryptocurrency Scams and How to Avoid Them
Trends suggested that most cryptocurrencies sent from scam addresses, nearly 75 percent, ended up at mainstream cryptocurrency exchanges. But in what can be seen as a slim note of positivity amidst this gloom, there were fewer individual scam victims, given that the number of deposits to investment scam addresses fell from The average duration of a scam also fell to 70 days in , from a substantial days last year. However, the rip-off amount from the same has risen in proportion, and so has the numbers of financial scams active and receiving funds at any given point, from 2, in to 3, in However, the long-standing, statistically proven and directly proportional relationship between sustained cryptocurrency price surges and scamming activity seems to have broken, indicating that the influx of new users during this time is potentially not being targeted for such frauds. Rug pulls happen when developers list a seemingly legitimate crypto or blockchain project and then, suddenly disappear with investor funds.
Beware of cryptocurrency scams
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What To Know About Cryptocurrency and Scams
But one common thread binds them: they have all been embroiled in scams involving cryptocurrency, the decentralised digital currency. These scams have crippled their futures, with hundreds of thousands of dollars funnelled into the hands of cybercriminals and lost forever. Queensland couple Emma Robinson and Hugo de Meira Quintao have long dreamed of buying their own home.
York police warn about cryptocurrency investing scamsRELATED VIDEO: Bitcoin Investment Scams, Investigated!
Call us: FSCL found that the exchange platform, which Isaac used to purchase cryptocurrency to invest in an investment scheme, had adequately warned Isaac about the risks of investing in the scheme. Isaac believed that the exchange platform should not have authorised his transactions and argued that the platform had a responsibility to verify the merchants their customers pay bitcoin to. The exchange platform said they have no responsibility over what their customers do with their bitcoin after they have purchased it and had made reasonable attempts to warn Isaac about the investment scheme.
Prince Harry and Meghan Markle being used to promote crypto investment schemes in fake scam adverts
Notwithstanding regulatory uncertainties, the crypto craze is increasing rapidly in the country. As crypto-assets continue to gain the attention of investors all around the world, they have also become a target for scammers who are looking to make some easy profits by exploiting individuals who would do anything to get rich quickly. Research by cyber exposure company Tenable has found that scammers are leveraging compromised YouTube accounts to promote fake cryptocurrency giveaways for Bitcoin, Ethereum, Dogecoin, Cardano, Ripple, Shiba Inu and other cryptocurrencies. Scammers hijacking legitimate YouTube accounts to promote fake cryptocurrency giveaways are not new. However, individuals are still being duped by scammers. This is a big red-flag and more often goes unnoticed by many who move into crypto to make a quick buck.
Sebastian, who lives in Cologne, Germany, later told BBC that while he had some apprehensions, the website he was directed to looked legitimate, and the potential returns were too good to turn down. Stories like this are all too common. But compared to the same period a year prior, there were 12 times the number of reports and a nearly 1, percent increase in reported losses.