If something is this well-known and sought-after and sought-after, you can be certain you will see lots of people who are looking at the same thing, and looking for victims. The emergence of new technologies like Crypto has as well as the thing that nobody knows completely, will result in lots of haggling and a lot of fraud being conducted.
Unfortunately, this is the reason why cryptocurrency is a problem for traders and the holders too. The fraudsters will not pass up the chance to earn an easy buck by committing these shady activities, particularly when it comes to something that’s yet to be fully understood by the majority of its owners and traders.
It is important to know that the majority of crypto enthusiasts have jumped on the crypto train due to the fact that they heard about it or were recommended by someone else. The majority of them have the basic information about this since this is all they require to acquire crypto in order to store and trade. These are the places where scammers view their opportunity to earn quick cash and cause trouble to people simply because.
There’s plenty of information on the internet about this, and you must go through it, just be sure you’ve verified your identity of fraudsters. If you’re an inexperienced crypto-holder or investor, check for yourself at bmmagazine.co.uk and see what they have to say about you. Now let’s find out which scams are the most well-known are!
1. SOCIAL MEDIA
Social media is an important problem in all kinds of situations particularly in the case of scams involving crypto. Social media is the primary source for any information on the victim that scammers could use. The crypto market exploded and everyone began tweeting and DMing about it, scammers came up with a clever idea. How can you hack into a legitimate profile of someone who has a high influence in the community and have everyone who follows the profile believe in what this persona brings on the scene. If you are aware, accounts of Elon Musk, and other massive personalities that were stolen or hacked, and posted tweets about investing into specific cryptocurrency that only benefited none more than scammers. If hacking an account becomes difficult, they hack an other blue check-marked account add a photo of a celebrity then rinse and repeat.
2. CRYPTO GIVEAWAYS
Another way of scamming you with your hard-earned cryptocurrency or hard-earned cash is through giveaways that are the most prominent on social media, including Twitter up to Facebook, Instagram and Telegram. You can be sure that in 2022, more than 100,000 people across the globe have been scammed out of their cash through these giveaways. There are a few people who circle, however you can find them, mostly, in the form of “like follow and you can enter the crypto giveaway pool” or “invest little and create a chance to win a lot” kind of pool. Also, there are giveaways where that you can win if you promote the post by bringing your friends along and whatnot. You can see that with these scams, the fraudsters do not have to be very clever because they are easy to trick, particularly when you give them lots of money for a small cost. Imagine what you would do if I said that you could win $1,000 from a raffle game and you just need to spend $1 to participate to participate? Would you be willing to try it? I’m sure I would since taking risks and gambling are part of our DNA.
3. DEFI RUG PULL
Another fairly obvious fraud involving cryptos has become rather popular. As decentralized platforms become more popular with the intention of revolutionizing the old financial model they’re attracting fraudsters from all across the globe. If you haven’t already, DeFi models are providing individuals with the possibility to invest their cryptocurrency in networks, and earn by earning interest. Since the currency is secured within the network, you as the owner will be receiving regular installments from the interest. Do not be afraid right away as most of the DeFi platform are real and generate revenue for the investor However, some on the other however are created solely to swindle individuals. The way it works is that your money is secured in the network by an intelligent contract. Once having accumulated enough, scammers get the money or pull your rug without giving you the opportunity to recover your investment.
4. NFTS
There is no doubt that you’ve heard about it certain. It’s everywhere and is getting the attention of people who are incomprehensible, at least for me. NFT or Non-Fungible Tokens are currently the top investment trend in the cryptocurrency market due to the high prices they’re fetching. What NFT is in essence an art form that is stored on a blockchain that is able to be transferred across markets. While it appears that it’s easy it is easy to copy the pictureor video of the specific NFT but the code that identifies the location of the NFT is a bit more challenging. That means that the person who has the hashtag is the one who has the power, while fraudsters were not discouraged from trying to create duplicates. This is why it is advised to look for legitimate websites that validate the hashtag’s code, and also use two-factor authentication.
5. ALTCOIN PUMP AND DUMP
It is perhaps the most straightforward cyber-scam to become a victim of. While everybody is warning everyone about this scam and there are a myriad of reports, eye-opening videos and testimonials, there’s always a new victim who fell victim to this kind of fraud. These scams function just like penny stocks in that they’re usually inexpensive and have market cap sizes that are small enough to allow their prices to be massively influenced or even pumped. This happens again via influencers and social media that offer these pumps and dump scheme like hotcakes. The communities they influence eat them up, even though the influencers do not have any experience in cryptocurrency or trading. This is the kind of world that we live in, unfortunately. The majority of them purchase these altcoins to start hype the coin and pushing its value to the maximum. The people who follow them invest heavily into these coins that results in an increase in prices for the currency and, when they have enough money is made, or the price they want to pay is reached, the influencers sell these coins as quickly as they can, and take off all the profits to them. If you’re looking for an illustration of this type of fraud, which was made public, you can look into in the John McAfee case, the famous pioneer of cyber security.
