• News
  • Celebrities
  • Finance
  • Crypto
  • Entertainment
  • Travel
  • Health
  • Others

Want To Invest In Cryptocurrency? Know These Massive Scam Alerts First

If you are considering jumping the bandwagon, please consider there is a massive scam alert in cryptocurrency. We will discuss major massive scams in this article along with how you can avoid these scams. It is important to know what steps you can take to protect your investment. Keep reading for cryptocurrency scams and their ins and outs.

Prominent Cryptocurrency Scams

The largest SCAM in cryptocurrency history is currently taking place, and the criminals are using Telegram, YouTube, and PR to commit the crime. Look for Mehracki on Google and read some of their articles. Search any project from boostx.finance after that (they are all scams).

A hooded figure without the face, holding the mobile phone in one hand
A hooded figure without the face, holding the mobile phone in one hand

Some of the prominent scams include Seesaw Protocol, Calyx Token, PacmanFrog, Quitriam, Arcanup Network, Firepin, Automish Token, Parody Coin, Explorachain, Mehracki, etc.

People who believe there is a "pre-sale" for a phony token contribute money, the fake token is released but no one can cash it out, and users' cryptocurrency wallets are then completely erased.

More people fall victim to fraud when they operate longer. Everyone should file complaints with the FTC, icann.org, Telegram, YouTube, and any other places they can, and they should not link their wallets to any of those.

Now that we have laid out major scams, it is time to deep dive into cryptocurrency and the scams associated with it. We also need to address what the future looks like and are these scams temporary or will they stay. We also need to analyze how these scams work to better understand the whole ecosystem.

Frauds In Cryptocurrency

Because cryptocurrencies are still relatively uncontrolled and new, many investors are leery of them. There are "a lot of good projects and decent individuals" working on digital asset goods, says Merav Ozair, blockchain expert and fintech professor at Rutgers Business School, even though unscrupulous actors and scams may damage the reputation of the entire ecosystem.

But according to Jonathan Wykes, managing director at cryptocurrency exchange CEX.io, "the nature of being decentralized means that a bank, regulator, or law enforcement agency has no control over the network or crypto assets," adding that "unless your crypto was scammed by another user on a centralized exchange, getting stolen crypto back is nearly impossible."

A man standing in front of his desk with a lamp and laptop; dressed in a grey shit and glasses, gesturing towards a hanging cryptocurrency
A man standing in front of his desk with a lamp and laptop; dressed in a grey shit and glasses, gesturing towards a hanging cryptocurrency

Even seasoned investors find it challenging to manage risks in a new, largely opaque industry where there is a lot of money to be gained, according to Alma Angotti, a partner in financial services at management consulting firm Guidehouse.

Scams Will Continue

According to a recent estimate, scammers stole $14 billion worth of cryptocurrency in 2021, setting a record for cryptocurrency theft. According to the "2022 Crypto Crime Report," which was published on January 6 by blockchain data firm Chainalysis, it is almost twice as much as the $7.8 billion that fraudsters stole in 2020.

It is understandable that "Olympic-level scammers" have seen new prospects for illegal behavior given the surge in interest in cryptocurrencies over the past year, said William E. Quigley, a well-known investor, and co-founder of the WAX blockchain.

During a panel discussion last month organized by blockchain company Light Node Media, Quigley predicted that the high-tech aspect of cryptocurrencies will continue to draw skilled con artists.

Consider the recent "Squid Game" hoax, in which investors claim that a new cryptocurrency token called SQUID and an associated immersive online game were nothing more than a sophisticated con.

Investors assert that the developers vanished after the value of the currency soared and allegedly cashed out with more than $3 million. Whether people like it or not, cryptocurrency investors are putting themselves in increased danger of fraud and scams.

Telltale Signs Of Cryptocurrency Scams

The Federal Trade Commission (FTC), based on scam reports submitted in the U.S., estimates that from October 2020 to March 2021, about 7,000 persons in the U.S. lost upwards of $80 million in cryptocurrency scams.

Compared to the 570 bitcoin investment scams and $7.5 million in losses in the same months the year prior, this is a significant increase. There are some common patterns that one needs to be aware of and we will discuss those aspects in the following paragraphs.

It is probably a scam if a person or business that appears trustworthy says they only accept Bitcoin or Ethereum as payment. Since bitcoin and other cryptocurrencies are a growing asset class, analysts claim that reputable institutions will not take cryptocurrencies without simultaneously accepting U.S. dollars via conventional payment methods including wire transfers, cheques, credit and debit card purchases, and cash.

In general, anyone who requests payment in Bitcoin may be seeking to hoard it and profit from its rapidly rising value. Additionally, blockchain does not use standard know-your-customer (KYC) protocols as banks use. This indicates that wallets can be opened without the need for proper identity, a Social Security number, or an address and phone number.

Even though blockchain generates everlasting records with free access, con artists can still trick you and take your money.

Clandestine Investment Schemes

It is common for a new cryptocurrency to be created, and when this happens, it is known as an initial coin offering (ICO). However, ICOs can also be targeted for fraud. A business or a person may claim to have a once-in-a-lifetime chance to invest in a novel kind of cryptocurrency with a certain 1,000% profit.

Zoomed in keyboard with 'scam alert' key and bitcoin symbol in the foreground
Zoomed in keyboard with 'scam alert' key and bitcoin symbol in the foreground

They might then exert pressure on you to add several additional coins to a compromised digital wallet or "pump and dump" by accumulating the coin and dumping it when its value soars.

Crypto frauds are prevalent on dating apps as well. The FTC reports that from October 2020 to March 2021, bitcoin accounted for nearly 20% of the money lost in romance scams.

These kinds of scams involve long-distance or digital connections where one side urges and persuades the other to buy or provide money for some new cryptocurrency while it is just a way to trick people out of their money.

Phishing Scams And Digital Collectibles

This kind of fraud is as ancient as the internet, but there are some fresh consequences with cryptocurrency. Bad actors send emails to recipients to trick them into clicking links and entering their personal information, including their crypto wallet key information, just like a "regular" phishing attack would.

However, you only receive one private key for your blockchain wallets, unlike most passwords and usernames. This is a feature of blockchain technology's decentralized architecture, which ensures that one organization cannot control its information.

Sophisticated coders can now construct new games and entire fantasy worlds on the blockchain, as we saw with the "Squid Game" fraud. And to finish it as soon as the next Netflix show goes viral. Getting eager blockchain newcomers to purchase a particular type of freshly produced coin or game token is an easy way to con them.

If enough people increase the price due to supply and demand, the original con artists will have the chance to liquidate all their assets and vanish, a technique known as a "rug pull." On the blockchain, there is no such thing as fraud protection or FDIC insurance.

Measures To Protect Your Crypto

Even the most knowledgeable and passionate cryptocurrency experts are aware that there are now a lot of new and developing threats in the world of cryptocurrencies.

Some people have survived frauds on their own, including blockchain investor and entrepreneur Ian Balina, who claimed to have lost $2.5 million after someone broke into his Evernote account and stole the private wallet key information. Even for seasoned investors, Balina's tale illustrates the risk of loss and fraud when working with a brand-new, highly volatile asset class.

Most passive investors are advised by financial experts to keep their cryptocurrency holdings to less than 5% of their total portfolios and never put their cryptocurrency investments ahead of emergency savings or the repayment of high-interest debt.

Cautious Use Of Digital Wallets

You must safeguard your digital wallets from hackers just like you would your physical wallet. Put big sums of digital money in a safe or FDIC-insured savings account to practice strong digital security habits like how you would manage large amounts of physical money.

Small-scale investors with a few hundred dollars worth of cryptocurrency are likely fine keeping it on a well-known exchange like Coinbase, according to experts. However, it makes more sense to include a wallet for added safekeeping if you acquire cryptocurrency valued at several thousand dollars.

There are two different kinds of cryptocurrency wallets, known as "hot wallets" and "cold wallets," respectively. Online servers hold or store hot wallets. They are safe, but more prone to hacking than cold storage, which is the offline hardware storage of cryptocurrency.

Imagine cold storage as being like a safe on a USB drive. Although it is more secure, you risk losing all access to your money if you forget your password or misplace the device.

Like cash in a bank, cryptocurrency held in hot wallets is not FDIC-insured. Therefore, you should ensure that whichever platform or wallet you use to store your cryptocurrency has high-security standards.

These security measures include private insurance policies, two-factor authentication, and using the cold wallet to store some portions.

Reporting Fraud

Since there are massive scams, one needs to be aware of how these fraudulent activities are formally reported. There are several platforms where these could be reported apart from the FBI. These are as follows:

  • The FTC: ReportFraud,ftc.gov
  • The US Securities and Exchange Commission (SEC) at sec.gov/tcr
  • The Commodity Futures Trading Commission (CFTC) at CFTC.gov/complaint

People Also Ask

How Much Crypto Has Been Scammed?

In cryptocurrency scams between January 2021 and March 2022, victims lost more than $1 billion, according to a report published on Friday by the Federal Trade Commission. Since the start of 2021, over 46,000 people have lost money in cryptocurrency fraud, making it the most common type of payment scam.

Will Coinbase Refund If Hacked?

The good news is that Coinbase insures against crime and secures the bulk of its digital assets. If your account is compromised, you will receive a reimbursement. They may still credit your account even if you lost money carelessly or unintentionally.

Is Crypto Real Money?

Any kind of money that exists digitally or virtually and uses cryptography to safeguard transactions is known as cryptocurrency, also referred to as crypto-currency or crypto. Cryptocurrencies use a decentralized mechanism to track transactions and create new units rather than a central body to issue or regulate them.

Conclusion

There are massive scams associated with cryptocurrency that one should be aware of. New scams are springing up every day but there are always common red flags through which we can avoid losing our money. Undoubtedly, a lot of people have made money but there are massive scams as well.

Disclaimer: We do not promote or support piracy in any capacity. Piracy is considered wrongdoing and is viewed as a genuine offense under the Copyright Act of 1957. This page plans to inform the overall population about the robbery and urge them to be protected from such demonstrations. We also ask that you not be energized or participate in theft in any structure. We encourage you to avoid illicit content or pirated content and shield yourself from spam. Stay safe!

About The Authors

Camilo Wood

Camilo Wood - Every day, to make a conscious decision to do something, say something, or act in a way that will improve my work experience. I assist organisations in disrupting the status quo of transition. I teach them how to turn their community from enduring change to evolving through change using a realistic and repeatable structure.

Recent Articles

  • Filipino Cops Nabbed Germany's Radical Conspiracy Theorist

    Filipino Cops Nabbed Germany's Radical Conspiracy Theorist

    Filipino cops nabbed Germany's radical conspiracy theorist named Oliver Janich last Wednesday morning. He was arrested early on Wednesday, and according to the German Press Agency, he will be sent to Germany. An "arrest" was also mentioned on Janich's Telegram channel, one of the most widely used channels for spreading conspiracy theories in Germany.

  • Isan Did Not Talk To Idris Elba For Three Weeks - This Is Because Of Idris Elba's Movie "Beast"

    Isan Did Not Talk To Idris Elba For Three Weeks - This Is Because Of Idris Elba's Movie "Beast"

    Idris Elba said that after his daughter Isan didn't get a part in one of his movies, Isan did not talk to Idris Elba for three weeks. The 49-year-old actor said that producer Will Packer had to tell her she didn't get the part in his upcoming movie Beast, in which she would have played the daughter of The Wire star Michael K. Williams as a lion terrorizes the family. Idris said on the morning show The Breakfast Club on iHeart Radio that he and Isan didn't work well together in the movie, even though they were friends in real life.

  • Is Rupee4Click Fake Or Real?

    Is Rupee4Click Fake Or Real?

    Rupee4Click is the head of an Indian Cost Per Referral (CPR) advertising company that provides "pay for referral links" administration.

  • Japan's Annual Syphilis Cases May Exceed 10,000

    Japan's Annual Syphilis Cases May Exceed 10,000

    In recent years, there has been a marked increase in the rate of syphilis spread in Japan. According to experts, the number of people infected with the disease is expected to be higher than 10,000 in a single year.

  • Netflix Revealed The First Glimpse Of The New Addams Family From The ‘Wednesday’ Series

    Netflix Revealed The First Glimpse Of The New Addams Family From The ‘Wednesday’ Series

    Netflix revealed the first glimpse of the new Addams family from the ‘Wednesday’ series. Netflix posted a picture of the Addams Family in black and white to Instagram with the remark, "Say hello to Netflix's Addams Family." Wednesday, a new Tim Burton television series, stars Isaac Ordonez, Jenna Ortega, Luis Guzman, and Catherine Zeta-Jones."

  • Inflation Reduction Act Now A Law - Rallying Climate, Healthcare

    Inflation Reduction Act Now A Law - Rallying Climate, Healthcare

    Several Biden administration officials and Democrats called the signing of the Inflation Reduction Act as a landmark decision by the president. The IRA makes families save money without compromising their health as it also imposes a huge tax on filthy rich corporations. Seems fair, right? Oh, and Mother Nature benefits, too.

  • Golden Rules For Shaping Up Your Finances

    Golden Rules For Shaping Up Your Finances

    Could your personal finances use a quick makeover as the economy officially enters a recession?

  • How To Play Online Casino

    How To Play Online Casino

    Playing at online casinos is a pastime that has grown enormously over the past decade. As such, it’s become a hugely popular way for people to enjoy themselves online.

  • Double-Digit Growth In 2022 For U.S. Luxury Beauty Market

    Double-Digit Growth In 2022 For U.S. Luxury Beauty Market

    A double-digit growth for U.S. luxury beauty market has been reported. According to The NPD Group, higher-income consumers in the United States with yearly household incomes of more than $100,000 spent approximately $9 billion on beauty goods in the first half of 2022.