In just ten years, the whole cryptocurrency industry has amassed a trading capitalization of almost $2 trillion USD. By 18 December 2017, the price of a single bitcoin had risen to $18,737.60, causing widespread FOMO insanity, but by 15 December 2018, the price of bitcoin had dropped to $3,209.76. The volatility of cryptocurrencies hasn’t deterred investors from trying to make a quick buck. This is precisely where scammers take advantage of trusting victims.
Despite the fact that blockchain technology is a very secure technology, cyber fraudsters attempt to break into websites and threaten users’ digital wallets and money by looking for holes and breaches. Not without first stating that the regulations protecting ICO investors are far from perfect, making it easier for originators to commit serious financial wrongdoing and go unpunished.
The name “Wild West” is frequently associated with cryptocurrencies, and for the most part, it is accurate. As global regulation is still a work in progress, with governments struggling to keep up with the pace of innovation.
Also read: Trusted hacker for hire
Individuals typically buy cryptocurrencies with a credit card, wire transfer, or any other method of moving monies to a swap. In a rare cases, directly through scam sites, and this is where card issuers and banks fall short, as they are required to protect customer reserves and funds.
Cryptocurrency Scams in the 20th Century.
Because cryptocurrencies are untraceable, investment scammers will continually try to persuade you to swap them. Because they are untraceable, it is difficult for the unskilled to track down and recover their assets. Two of the most lucrative con jobs in history are listed below.
Ruja Ignatova and her brother, Konstantin Ignatov, launched “OneCoin” in 2015, claiming to be a new and improved version of the cryptocurrency Bitcoin. In doing this, he swindled an incredible $5 billion from people all over the world. They hosted elaborate and wonderful events where they pitched one currency to unwitting investors. They claimed it was on its way to changing the world and ushering in a new era of monetary privilege. Early committers were advised that they would be present at the start of a transformation. Despite this, nothing was genuine; OneCoin lacked a blockchain, cryptocurrency, or wallet. Ruja Ignatova vanished in the middle of 2017 and is now facing charges of money laundering in several countries.
Another well-known MLM cryptocurrency scheme was “Bitconnect,” which had amassed a market capitalization of more than $1.5 billion just before the entire house of cards collapsed on January 16, 2018. Tens of thousands of people lost all of their investments in what turned out to be a worldwide Ponzi scheme. In regard to bitcoin/BCC exchange, the scammers were charged with deception, misrepresentation, and misappropriation. Law enforcement organizations in virtually every major country are now looking for crypto scammers. You may hire a hacker to retrieve your lost bitcoins from scammers at cyber-prime.
Common Types of Cryptocurrency Scams
Fake investment syndicates
The scammers that run internet “syndicates” are usually the only ones who profit from them. The websites appear to be extremely legitimate, and, similar to binary options websites. They also display photographs of happy people in exotic homes, sports cars, or exotic locations. These scammers claim to have made a large profit by investing with anonymous cryptocurrency professionals who remain in the shadows. The last time you see your money will be after you hand it over to the scammers. Then customer service is unexpectedly too busy to assist you with questions regarding returned investments or missed dividend pay days.
Fake exchange Platforms
They’re all over the internet, and it’s tough for new investors to tell the difference between the real and the fake. BitKRX was shut down by Korean regulators in December 2017. What was particularly heinous was BitKRX’s willful misrepresentation of itself by appropriating the final three letters of its name from KRX, the Korean Stock Exchange.
Pyramid and Ponzi schemes
Given that cryptocurrency investments are certain to gain in value at an alarming rate. Why would an individual offer you a higher return than the market standard? The most obvious response is that the offer is a warning sign of a cryptocurrency Ponzi or pyramid scheme.
The phenomenon will persist, in as much similar online plots employ the identical 200 percent -in-90-days business management, and are destined to crumble just as well. The main disparity amidst the operators of these websites and Charles Ponzi, after whom the scheme is named, is because these guys unalike Mr. Ponzi, are unidentifiable.
Messages on Telegram
Scammers frequently use the “Telegram messaging” service to dupe victims into believing they are directly communicating with legitimate “admins” simply by changing their username to make it appear official, i.e., by attaching a letter or even an admin underneath their username. They will be patient enough to develop trust and give assistance as soon as they open a conversation with you. They will also appear to be really empathetic to your needs.
Furthermore, they will soon demand that you transfer bitcoin as part of the admin need to activate your account. Sometimes, they will try to force you to send them your wallet’s private keys. Many people who are new to cryptocurrency are trusting at first and don’t know what to look for to spot a scam. Scammers take advantage of this and use it to their advantage.
Telegram is also full with bots and spam, most of which contain links to bogus websites or websites that can download phishing links. These links erases your data and information. It also allows thieves to learn more about your online presence, therefore we suggest you not to click on these links.
Pumping and Dumping
The crypto scammers “pump up” or stimulate up (pump) a cryptocurrency that they own in big quantities in order to sell it (dump) as soon as the price peaks. This dump is as a result of the increased demand that they have created. In many circumstances, they will easily entice naïve investors to join their scheme by making false promises of high returns. Unfortunately, most of these innocent people did not know until it was too late, and as a result, they were left with vast sums of useless cryptocurrency.
Click here for more help.