Crypto Trading Platform Scams – Learn the Basics of Crypto Scam Marketing: What They Are, What They Do, and How to Avoid Them
The crypto world is new and unregulated. This attracts fraudsters trying to run all kinds of crypto scams. We want to make sure you have the safest journey through the crypto world, so here we tell you about scams and how to avoid them.
Crypto Trading Platform Scams
Not all failed cryptocurrencies are scams. Investors can lose money if a virtual currency fails due to natural causes, and it was not specifically designed to develop people. Especially when a coin is hyped through social media accounts, you need to be alert and do your own research.
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Let’s look at facts and figures, examples of scams to better understand how crypto scams work and how to prevent crypto scams from happening to you.
In the United States alone, investors lost more than $80 million in crypto scams in the six months between October 1, 2020 and March 31, 2021, according to a report by the Federal Trade Commission (FTC). The report says that nearly 7,000 people have fallen victim to the scam, with an average loss of $1,900. These figures show that compared to the same period in 2020, the number of people targeted by crypto was more than 12 times higher. Fraud has increased by almost 1,000% and the amount of money stolen.
FTC software analyst Emma Fletcher said the resurgence of cryptocurrencies, coupled with high crypto prices at the time, which led to more people becoming interested in crypto, “played into the hands of fraudsters”.
“They are meddling in territory with claims that may seem fair because crypto is an unknown territory for many.”
Characterizing Cryptocurrency Exchange Scams
The FTC report said that people between the ages of 20 and 49 were five times more likely to be victims of crypto scams, but those over 50 were more likely to lose large sums of money, and make that age group more likely. The average loss per class is $3. , 250.
Shared the story of Sebastian, a 28-year-old pharmacy technician who lost his $10,000 investment in crypto startup LUB. The coin, which promised investors 10% daily returns, died in May, the WSJ said. Sebastian said:
Crypto investment fraud has decreased worldwide, with $4.1 billion stolen worldwide in 2019 and $432 million taken in the first four months of 2021, blockchain analysis company CipherTrace said.
However, the company says, crypto scams related to decentralized finance (DeFi) have increased, and $83.4 million was defrauded from investors in the first quarter of 2021, more than double the $41 million stolen in all of 2020.
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The authorities have managed to catch some fraudsters. In February, crypto hedge-fund manager Stephen Qin pleaded guilty to securities fraud charges in US federal court in New York. He admitted to lying to investors about the returns of his $90m fund, Virgil Sigma Fund LP. Qin, 24, an Australian citizen originally from Canberra, stole almost all of the fund’s assets and then tried to steal from another fund to help pay back investors. US Attorney Audrey Strauss said:
On March 2, a US court ruled that Benjamin Reynolds from Manchester in England had to pay $571 million after it was discovered that he had defrauded people to send more than 22,000 bitcoins. A federal court in Manhattan said Reynolds had to pay about $143 million on top of the $429 million fine.
Reynolds told investors he would sell his bitcoins in the markets to increase profits. He did not do any business for his clients. He targeted 169 US citizens and more than 1,000 people worldwide in the scam that took place between May and October 2017.
The newspaper reported in July on Subsidized Business Investment. The bogus company falsely claimed Russian oligarch Alisher Usmanov as its chief executive. It lists Indian steel billionaire Lakshmi Mittal and British chemical tycoon Sir Jim Ratcliffe as shareholders. Subsidy claims to offer crypto in its commercially available products.
Liquidity Mining Scams Add Another Layer To Cryptocurrency Crime
In April, Turkish crypto exchange Thodex went dark, leaving around 391,000 people unable to access their accounts. The CEO of Farooq Fateh Ozer’s company was seen at the airport. Turkish media reported that he took 2 billion digital dollars with him.
Historically, one of the most notable attempts involved a viral social media post purportedly by Martin Lewis, the founder of the British website MoneySavingExpert.com, to lure people into investing in Bitcoin as a scam site.
Lewis took legal action against Facebook. In January 2019, the social media giant agreed to pay Citizens Advice £3m so the organization could start a “fraud action” project.
“You may have seen ads with me for Bitcoin or Bitcoin trading. It’s not bitcoins, it’s a scam. Don’t touch them. If you see my face in an ad, it’s not real. Be very careful to do your research and find a legitimate source if you want your Bitcoin.
How To Identify And Avoid Cryptocurrency Scams
Also remember that cryptocurrencies are in a volatile market. Even if you are dealing with something real, there is no guarantee that you will make money. Do your research, remember that crypto prices can go up and down, and never invest more than you can afford to lose.
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The material provided on this website is for informational purposes only and should not be considered investment research or investment advice. Any opinion that may be expressed on this page is the personal opinion of the author and not a recommendation of him or his affiliates. We make no representations or warranties as to the accuracy or completeness of the information on this page. By relying on the information on this page, you agree that you are acting knowingly and independently and that you accept all risks involved.
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Crypto Investment Scams
Is a global crypto exchange platform that currently does not operate in the US, however you are welcome to browse and learn more.
Is a global crypto exchange platform currently not working in Europe, UK and Australia, however you are welcome to browse and learn more. Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government website.
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Confused about cryptocurrencies, like Bitcoin or Ether (related to Ethereum)? You are not alone. Before using or investing in cryptocurrency, learn what makes it different from cash and other payment methods, and how to spot cryptocurrency fraud or identify cryptocurrency accounts that may have been compromised.
How To Identify And Avoid Common Crypto Imposter Scams
Cryptocurrency is a type of digital currency that is usually only available electronically. You usually use your phone, computer, or cryptocurrency ATM to buy cryptocurrency. Bitcoin and Ether are the most popular cryptocurrencies, but there are many different currencies, and new ones are constantly being created.
People use cryptocurrency for many reasons – fast payments, to avoid transaction fees that are charged by conventional banks, or because it provides anonymity. Others hold the cryptocurrency as an investment, hoping that the value will rise.
You can buy cryptocurrency through an exchange, app, website, or cryptocurrency ATM. Some people earn cash through a complex process called “mining,” which requires sophisticated computer hardware to solve complex mathematical puzzles.
Cryptocurrency is stored in a digital wallet, which can be online, on your computer, or on an external hard drive. A digital wallet contains a wallet address, which is usually a long string of numbers and letters. If something happens to your wallet or your cryptocurrency – like your online exchange goes down, you send cryptocurrency to the wrong person, you lose your digital wallet password, or your digital wallet is stolen or compromised – you’re chances are you’ll find that no one can come forward to help you get your money back.
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There are many ways that paying with cryptocurrency differs from paying with a credit card or other traditional payment methods.
Fraudsters are always looking for new ways to steal your money using cryptocurrency. To avoid crypto scams, here are a few things to know.
Spot crypto-related scams Scammers are using some tried-and-true scams – only now they’re asking for payment in cryptocurrency. Investment scams are one of the main ways scammers trick you into buying cryptocurrency and sending it to scammers. But scammers impersonate businesses, government agencies and romances, among other tricks.
Investment scams often promise that you can “make a lot of money” with “zero risk” and often start on social media or online dating apps or websites. This scam, of course, can also start with an unexpected text, email, or phone call. And, in addition to investment scams, crypto is useful in two ways: it can be an investment and a payment.
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Originally posted 2023-05-12 13:09:19.
