Fraudsters and Cryptocurrency
Cryptocurrencies, such as Bitcoin, are digital or virtual currencies that are decentralized and not regulated by any government or central bank. This lack of regulation makes them attractive to fraudsters who can take advantage of the anonymity provided to commit various types of crimes. It is important for users of cryptocurrency to be aware of the risks associated with these digital assets in order to protect themselves from becoming victims of fraud.
Types Of Fraud Involving Cryptocurrency
The most common type of fraud involving cryptocurrencies is a scam where someone will claim they have access to high-return investments using cryptocurrency and once they receive payment, they disappear without returning the funds. Other scams include fraudulent ICOs (initial coin offerings) where companies pretend to be running legitimate businesses but instead use investors’ money for their own gain; pump-and-dump schemes which involve artificially inflating a currency’s value then selling it off quickly at a profit; phishing attacks where criminals send emails impersonating legitimate exchanges in an attempt to get you to provide personal information; fake wallets created by scammers pretending to offer secure storage solutions which actually expose users’ private keys when used; malware attacks on computers that can steal stored crypto funds as well as other malicious activities like DDOS attacks on websites related to crypto transactions. Additionally, some people may try and use stolen credit cards or hacked accounts for purchasing cryptocurrencies illegally.
How To Avoid Becoming A Victim Of Crypto Fraud?
In order prevent yourself from becoming victimised by cryptocurrency fraudsters there are certain steps you should take:
• Research thoroughly before investing – Be sure that all ICOs, exchanges, wallets etc., you invest in are legitimate and look up reviews about those services online if available
• Make sure your computer is secure – Use anti-virus software regularly update your OS & browser • Keep all passwords safe – Do not share them with anyone else even family members • Double check exchange fees – Always confirm what amount you will be charged before making any transaction • Enable two factor authentication wherever possible – This provides an extra layer security when logging into wallet accounts • Monitor transactions closely – Check your balances often so any suspicious activity can be noticed immediately
