"Cryptocurrencies are digital currencies that are not backed by any government or central bank". They are decentralized, meaning they are not controlled by a single entity. Cryptocurrency prices fluctuate unpredictably and can be very volatile. This makes them ideal for speculation and trading, but also means they can be very risky investments. With this, still there’re many scams going on in crypto world.
Cryptocurrency scams are a type of fraud that is perpetrated by scammers who want to make money. They do this by creating artificial bubbles in the market and then profit off of those bubbles when they burst. Cryptocurrency bubbles have been around since the inception of bitcoin, which was created in 2008 as a way to trade goods without interference from a third party like a bank or government. There have been many cryptocurrency bubbles over the years as people continue to invest in new coins with the hope of making quick money.
The most common type of cryptocurrency schemes would be discussed in series in this short article, the common ones we are going to discussed include: Bitcoin investment schemes, Romance scams and Phishing scams.
Bitcoin investment schemes
There are many types of schemes in Bitcoin investment, we’ll look at two common ones, which are investment managers and celebrity endorsements.
Investment managers
Scammers contact investors claiming to be experienced "investment managers" in bitcoin investment schemes. As part of the scheme, the so-called investment managers claim to have made millions of dollars investing in cryptocurrency and promise their victims that they, too, will profit from their investments.
Celebrity endorsements
In this type scam, scammers use the name or image of popular celebrities to convince you to invest without celebrities known. In most cases, they frequently employ fake celebrity endorsements to promote themselves.
An advertisement claiming to endorse or have made a sizable profit from an investment opportunity may appear on social media (mostly in pop up) or even YouTube using the image of a celebrity.
So take note before you invest on this type of ads.
Romance scams
Cryptocurrency frauds are commonplace in dating applications. Relationships in which one side takes time to win the other party's confidence are a common setting for these scams, which are often long-distance and entirely online. One party gradually persuades the other to exchange money for cryptocurrencies in exchange for purchases or donations.
Phishing scams
Phishing is a sort of online scam that preys on consumers by sending emails that appear to be from reputable companies, such as banks, mortgage lenders, or internet service providers. It requests personal identification data from the customer. The fraudster then uses the data to open new accounts or hack into the consumer's active accounts.
We'll try our best to write up the next series, soon.
How to overcome scammers is COMING soon!
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