Millions of cryptocurrency investors have been defrauded of huge amounts of real money. In 2018, losses related to cryptocurrencies amounted to $1.7 billion. Criminals use old methods and new technologies to defraud their brands in systems based on digital currencies sold through online databases called blockchains.
While others use highly automated and complex processes, including automated programs that interact with Telegram, the Internet instant messaging system is popular among those interested in cryptocurrencies.
Even if a cryptocurrency plan is legitimate, scammers can still control its market price. Fortunately, there are lots of websites like https://scamwarning.xyz where you can read the Cryptocurrency services reviews and then decide to trade with them!
Fast-Talking Swindlers
Some cryptocurrency fraudsters benefit greatly by appealing to people’s greed. For example, an unknown group of entrepreneurs runs the iCenter fraud bot, which is a Ponzi scheme for Bitcoin and Litecoin. It does not provide information on investment strategies, but somehow promises investors a return of 1.2% per day.
At the same time, newcomers often use social media to share their referral codes with friends and contacts, which attracts more people to group chat and investment programs. There is no real investment of funds in a legitimate business. Instead, when new people join, the person who hired them receives a percentage of the new funds and the cycle continues and is distributed to previous participants in each round of new investors.
Lies and More Lies
Some scammers prefer direct cheating. The founders of the OneCoin cryptocurrency scam deceived $ 3.8 billion investors by convincing people that their non-existent cryptocurrency was real. Other scams are based on claims of potential victims to jargon or special information.
Global Trading Fraudsters have taken advantage of price differences on different cryptocurrency exchanges simply by buying at low prices and selling at high prices. Indeed, they simply took money from investors.
Exploiting Friends and Family
Once an app is launched, it will at least survive on social media. One person promises to reap huge benefits from investing in cryptocurrency and spreads the word to friends and family. Sometimes big names get mixed up.
In India, for example, GainBitcoin and other fraudulent fraud centers have persuaded a number of Bollywood celebrities to promote his book, Cryptocurrency for Beginners. He even tried to become a famous man who called himself a cryptocurrency guru, while also attracting $ 769 million to $ 2 billion in investors.
Fraudulent Initial Coin Offerings
Another popular scam method is called the first coin offer. The possibility of making a potential legal investment, the initial delivery of coins, is basically a way to launch a cryptocurrency to attract funds from future users: in exchange for sending active cryptocurrency. bitcoin and ethereum, customers are promised discounts on new cryptocurrency coins.
Investors looking to make a profit in the field of new technologies are still interested in blockchain and cryptocurrencies, but they should be aware that these complex systems are nothing new to those who sell them either.
Newcomers and related professionals have fallen victim to scammers. In an environment like the current cryptocurrency market, potential investors need to know exactly what they are investing in and who is involved, without harming others.