In this digital world, people are also getting attracted to digital currency, also referred to as cryptocurrency. However, the transactions associated with these currencies also involve some risks. To be clear, we are not referring to market volatility. Financial frauds are everywhere, and cryptocurrency has no exceptions. If you plan to invest in such cryptocurrency platforms, be prepared for the losses involved in these digital exchanges.
Always ensure that the investment you make in cryptocurrency is powered by blockchain so that you can track the details of a transaction. Aim for companies that mention the liquidity of their digital money and have specific ICO policies. Look for actual people that work in the company. If any of the above things lack then be extra cautious while investing in digital currency.
However, if you still get duped with cryptocurrency or bitcoin scams, you can consult with bitcoin scam recovery experts. They have a thorough understanding of this industry and can guide you to recover from your loss.
Shocking Rise of 1000% in Cryptocurrency Scams in Last Few Months
The price and popularity of digital currencies are rising daily, be it ethereum, dogecoin, or bitcoin. With its rising popularity, the scams associated with cryptocurrencies are also on an all-time high.
Since October 2020, the US alone has accounted for over $80 million in digital investment scams. Surprisingly, it is a rise of 1000% since the fall of 2019, as per the reports of the Federal Trade Commission. The FTC also clarified that people between the 20 and 49 age group suffered majorly. This age group alone accounts for 44% of the total losses.
The FTC report clearly shows about 7000 cases reported for digital investment scams between October 2020 and March 2021. The average loss per case is around $1900. These scams are taking place even as we see a continuous rise in bitcoin prices.
Surprisingly, even celebs are backing them, and US investors are keener towards investing in cryptocurrency. On 7th May, 21, Elon Musk tweeted and pointed towards the potential that cryptocurrency has, but also said to “invest with caution”
Identifying Common Cryptocurrency Scams to Avoid Them
Let’s go through some common ways through which the scammers make the investors their victims. Being aware of these ways can help you avoid these digital investment scams and enjoy the benefits of cryptocurrency.
1. Duplicate Websites
Sometimes you may follow solid advice from an industry expert to invest, but still get scammed because of these duplicate websites. Surprisingly, the scammers are designing websites that look identically the same as the original website. Always look for a small lock icon next to the address bar, which indicates the website’s security. Avoid payments on websites that do not start with ‘HTTPS‘ and are not secured.
Sometimes the website looks the same but gets redirected to another platform when making payment. Ensure that you are on the website you researched and not getting to another website while making payment. It is always good to type the complete URL, double-check it, and then enter the website. Avoid clicking on links sent by someone you do not know or have not met in person.
2. Lookalike Mobile Apps
Fake apps in another huge source that scammers use to trick potential investors, and you can download them from Google Playstore and Apple Store just like the original apps. Identifying between the fake and original apps can be very difficult at times. The original app owners often report these apps and get them deleted. Yet thousands of investors have become victims of these fake crypto apps, as reported by bitcoin news.
These risks are more in the case for Android users, but all the investors should address caution. Read carefully and see any incorrect spellings in the app name. Look for logos and color combinations of the brand, avoid any apps with inauthentic color schemes. If you have any doubts, do not proceed to download.
3. Impostor Social Media Accounts
We often discover that the celebrities that we are following on social media are fake users. The same is with cryptocurrency, where fake, imitating bots are quite widespread. You cannot trust offers that you come across on social media platforms like Facebook and Twitter, particularly when these offers are very lucrative and beyond the usual.
4. Email Scamming
It may look like you have received an email from a genuine crypto company. But exercise extra caution before you invest your cryptocurrency. Check the branding and company logo, and make sure that they are original. Try verifying the email address of the sender with the company. This is why we always recommend investing with financial companies that work with real people, whom you can meet. In case of doubts, you can contact someone working there.
A good way to scam is by announcing initial coin offerings (ICOs) to attract the investor’s funds. Be mindful of such offers that you receive on emails or come across while browsing the internet. Spend some time and go through the details. The best way is to check it with the staff of the cryptocurrency company.
Cryptocurrency is Volatile, Invest Safely
Investing in cryptocurrency is unpredictable because of its volatile nature. You can see frequent ups and downs and dramatic price swings. Proceed with cryptocurrencies only if you are mentally prepared for this volatile investment.
Digital currency is at boom currently, but keep in mind that it is still very new in the market. Making investments in new concepts that we are not aware of calls for risks and challenges. If you still want to proceed, research thoroughly and make a conservative start.