Crypto Academy Season -3 Week 6- Homework Post for @yohan2on

Hello professor @yohapn2on, thanks for the topic treated for the week . it has been one of the most challenging issue across the globe .

Here is the submisssion of my homework task for the week.

WHAT ARE CRYPTO SCAMS?
MAKE YOUR RESEARCH ON ANY CRYPTOCURRENCY SCAM. (ATTACH A FEW REFERENCES TO THE NEWS SURROUNDING THAT SCAM CRYPTO PROJECT)

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The term scam is mainly used to describe fraudulent activities that occur primarily on the property of unknown persons. In today’s world, there are so many technologies and scams online, and it is growing. Scams are hard to plant because money is always in circulation, so it's best to be careful when trading online.
Cryptocurrency scam is a strategy for investors to mislead investors into believing that this is a fast-growing plan. Another common strategy used by these scammers is to open a stock market to obtain funds from investors, which will not attract investors in the post-investment stage.

The cryptocurrency scams have caught many people because they lost all their money to online scammers, and those scammers have brought them back to their original state. Cryptocurrency fraud is also a process in which a person or group of people pretends to be a person and earns money every day, and for that, it is necessary to invest in cryptocurrency.

There are many ways that scams go about capturing and deceiving people, and if you're not careful, you are a victim. Some of these methods include:

Create a fake website.

These scams create websites that look like the original website. They slightly changed the URL of the original site, making it difficult for users to find it. Users become victims and when they enter keys and passwords on these fake sites, their money is recovered. Users can detect these fake websites by looking at the small padlocks that may be located on the link to the original website.

By sending fake emails.

Scammers sent fake emails to the first batch of users of the exchange, and these emails were directed to fake trading websites. Users should check their emails and if in doubt, please contact customer service.

Also note that there are auction scams; They will create a Facebook page to sell products online, as soon as you click on the product you like it will take you straight to your inbox. In fact they will start communicating with you as soon as possible.

Scammers come up with attractive plans to get rich and promise people a high return on investment to deceive them. Investors need to properly investigate the companies before they make any type of investment.

How can you identify a scammer?

-First, they ask you to use encryption to pay, as the password is anonymous and you cannot track transactions here.
-Then, they will tell you that you will have huge profits after investing.
-Furthermore,In the field of cryptocurrency, they use huge, short-term profits to deceive people.

Make your research on any Cryptocurrency scam. (Attach a few references to the news)

I did some research and in my research there is a form of cryptocurrency fraud called,cryptocurrency clipboard hijacker.

Many online scams are motivated by malware - by using complex lines of code, even people with the most digital experience can escape protection. Malware is a major threat to users of cryptocurrency assets.

A well-known example of malware in cryptocurrency transactions is the cryptocurrency clipboard hijacker. This is the code that monitors the Windows clipboard to obtain the cryptocurrency address. If it detects one, it will exchange the expected transaction address for an address controlled by the "hacker" and send it elsewhere. Without paying attention to the address you use, you will not notice that it has changed during the transaction.

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The impact of cryptocurrency fraud on the cryptocurrency space is so great that it has been banned in certain countries/regions like my country Nigeria and lot more.
As most countries started banning cryptocurrency and restricting users, the price of cryptocurrency fell.

This affects institutions and many businesses.For example, exchange bans in some countries have reduced the number of investors and also reduced the source of income for owners, because when users exchange their assets with local currencies, they can make a profit.

Will regulations in Crypto add value to the Crypto space?

The cryptocurrency scams have caused many people to lose their confidence and desire to invest.
Fraud and pumping methods created worthless bull coins, and people fell victim to all these scams and lost their money.
The high rate of fraud in the field of cryptocurrencies prompted the government to investigate. If fraud persists, it could lead to more countries with stricter supervision of the use of cryptocurrencies and even bans on cryptocurrencies. Some countries stopped using them. The cryptocurrency is like in my country, Nigeria.

Crypto regulation can add both good and bad value to the crypto space. If cryptocurrencies are regulated by the government, they will want to tax all cryptocurrencies. As financial institutions also wish to monitor all transactions, the beauty of anonymity is compromised.

The good side is that, If the cryptocurrency is regulated, the market may not allow people to manipulate other people and transactions, and it may increase the value of the cryptocurrency.

CONCLUSION

All business systems face challenges. People want to be smarter than other people, instead of working hard for a real life. As we have seen in everyday life, the crypto space is not excluded from scams ,so investors should be careful while executing trades so as not to be a victim of the scammers.

Thanks for reading through my homework task