You’re surely aware of cryptocurrencies and how they have revolutionized the traditional ways of doing financial transactions. However, they bring several dangers and risks with them. Mainly, they are related to scams, theft, and others that can have a negative effect on one’s wallet and life.
Speaking of this, nowadays more and more users report that they have been scammed with cryptocurrencies or the money has been stolen from them. Unfortunately, this is completely possible and people are often left without many options to protect themselves. This shouldn’t be the case, though. What if we tell you that there are ways to stay safe and to avoid the dangers associated with cryptocurrencies?
The key is just to be careful and vigilant and find suitable websites to take care of the problems for you. But we’ll talk about more details in the following paragraphs. Firstly, let’s observe which types of scams there are and how they can be addressed and reported. Enjoy!
Which Cryptocurrency Scams Are Out There
It’s a fact that Bitcoin has risen above the other cryptocurrencies and to become a leader in this field. Therefore, it can be understood that most of the scams are related to this cryptocurrency. With its price reaching heights, many people want to get ahold of free Bitcoins in an unlawful way.
As a result of this, several Bitcoin scams can be identified. Some of them are:
- Fake exchanges – In the past, there were examples of fake exchanges of Bitcoin. They are done through platforms that aren’t legit and take people’s money without giving them the cryptocurrency in return. They may look like regular exchange platforms but in truth are led by frauds that look for opportunities to steal money online.
- Fake ‘Bitcoins’ – Another scam can occur when people present alternative cryptocurrencies to Bitcoin that are fake. They make them appear as attractive investments, convincing users to invest in them and later taking the money for themselves. So, you should be aware that it’s hard to offer an alternative to Bitcoin that can bring you a high return on investment and with this skepticism to examine every provider before giving them your money.
- Con artists that extract money – Have you been contacted by some institution or celebrity asking you to send money in cryptocurrency? Many people have been scammed this way. When they see a familiar name of a person or an institution they are usually inclined to send them money. But they can end in totally wrong pockets, leaving them tricked and with nothing.
- Computer malware – Whether you’re browsing on the Internet and land on a site full of malicious content or you open and click a link in an email, malware can enter your device and perform a cryptocurrency scam. This can happen if your wallet is on the Internet, enabling the person behind the malware to get a hold of your details and drain the funds you have in your wallet. Not to mention that the malware can be embedded in posts saying that you receive free mining opportunities, but you shouldn’t fall for that. And if anything looks suspicious to you, evade it at once.
- Pump-and-dump Bitcoin scams – Pump-and-dump schemes have been around for a long time. However, in the past they were mainly utilized for stocks where a group of people purchased many stocks that were sold at a lower price. This resulted in increased prices of the stocks, convincing other investors to buy them thinking that they will keep going up. Until they don’t and they’re left penniless. The situation with Bitcoin is similar. Nowadays, con artists use digital media to publish articles stating positive things about the cryptocurrency as well as social media channels in order to lure more investors to spend their money. As it’s not simple to differentiate the real from the fake, especially in the field of cryptocurrencies, people fall into the scam and lose their money. That’s why you should do yourself a favor and stay away from things that sound perfect without obtaining the necessary evidence that they are truly worthy.
- Cryptocurrency scams that involve brokers – Finally, it’s not uncommon to see brokers in the role of scammers. Furthermore, there are many cases where these individuals tricked their clients to invest wrongly in order to get money from them. Yet this one, as the other scams, can be reported and prevented. We’ll discuss how to do this.
Reporting Cryptocurrency Scams
After a scam happens, the victims should report it as soon as they find out about it to the relevant authorities. An even better idea is to ask for legal advice and help from experts that know how to deal with this.
The Internet is full of platforms that provide such services. Just remember to ensure that you have found the right one. Many indicators will show you this like reviews from other clients, the overall appearance of the platform as well as the services that it offers. The more clearly displayed they are the better. And it’s also nice to see whether they offer consultation. This way you can see who you’re dealing with more closely. The likes of BrokerComplaintAlert, for instance, even provide an option to file a complaint against a broker and a scammer at once by filling out a form on the site and sending it.
Eventually, it’s worth mentioning that people should do their best to prevent getting scammed rather than trying to fix the situation when something bad happens. For this purpose, they should be careful who they trust on the Internet and who they send cryptocurrencies to. Also, it’s recommended to have antivirus software installed if your electronic wallet is full of cryptocurrencies. Aside from this, every investment opportunity should be viewed with a dose of skepticism and the negative effects and possibilities should be evaluated. Moreover, as soon as something starts to appear odd or suspicious, it’s better to stop every communication and change passwords and other details in case you have already been put on the scammer’s radar.
So, after reading all of this, what do you think? Have you been a part of a cryptocurrency scam? Or you simply want to protect yourself before anything like that happens to you? In any case, we would like to hear your thoughts and experiences.