Protection from Crypto Fraud

Protecting from Crypto Fraud- Complete Controller

In April 2021, a Nevada court found David Gilbert Saffron guilty of committing ‘cryptocurrency fraud and misappropriation.’ As part of the judgment, Saffron will have to pay back $32 million to all those he defrauded. Defraud may be one of the most severe cases of cryptocurrency fraud we’ve seen lately, but it’s far from the first and won’t be the last. 

As cryptocurrency trading sees a rise in popularity across the digital world, so do scams and other cybercrime involving crypto. When cryptocurrency first rose to prominence on the internet, the Commodity Futures Trading Commission (CFTC) quickly warned against the various scams in such trading. Complete Controller. America’s Bookkeeping Experts

Types of Cryptocurrency Scams

Several such scams are just modern takes on classic illegal schemes. For example, the CFTC warned traders about pump-and-dump schemes, where scammers would bulk buy a particular cryptocurrency while its value is low, then release false news about a rich celebrity or organization investing in it, thus increasing the price. They would sell back their stock when the price was high, netting a substantial profit. The currency would fall in value once people realized they had been scammed. 

Other scammers have posed as cryptocurrency trading outlets, inciting less informed traders to hand over their money, hoping to see profitable returns, but they never do. 

Giveaway scams have become very popular on social media platforms, namely Telegram, Facebook, Instagram, and Twitter. Scammers will post fake videos and images from well-known corporations and celebrities, encouraging people to invest in cryptocurrency. These posts will feature hyperlinks leading to websites that look like authentic crypto-trading platforms but are designed to steal your cryptocurrency, bank information, and other personal data. 

Scammers may use data breaches on official platforms to obtain personal data and information about you. They’ll then use this data to extort money, or more recently cryptocurrency, out of victims.

Some scammers conduct employment scams. They post fake job postings online to gather personal data from applicants, which they then use to steal their cryptocurrency.  

Not all illegal activity surrounding cryptocurrency trading is as complex, however. Some more insidious hackers will hack into people’s virtual wallets and steal the cryptocurrency people have accumulated. 

According to The North American Securities Administrators Association (NASAA), cryptocurrency fraud is one of the significant threats to investors right now. 

Advice From the U.S Government

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Stay Informed

Scammers have been using the Covid-19 pandemic to take advantage of people. The government advises citizens to remain informed about cryptocurrency and the pandemic in general, as scammers can spread false information to commit fraud. 

If an Offer, Service, or Product is too Good to be True, it Probably is

This one might sound too pessimistic, but a bit of skepticism can go a long way in such uncertain times. Be wary of any service asking for personal information, and know who you’re sending money, gift cards, or cryptocurrency to before sending it. 

Don’t Act Immediately

Take all the time you need to assess your options and fully understand what kind of service you’re offering. A legitimate service would gladly assist and inform you if a service agent seems to be forcing your hand toward giving them your money and personal dataDownload A Free Financial Toolkit

Advice from a Reputable Crypto-trading Platform

Coinbase is one of the most reputable names in the cryptocurrency industry. It has been operating since 2012 and has earned a positive reputation among seasoned and novice crypto traders. 

Coinbase advises never to give sensitive information to anyone claiming to be support staff or any other employee of a crypto-trading platform, nor should you give them remote access to your device. 

Coinbase warns its users to be cautious of anyone who asks you to send them even the smallest amount of cryptocurrency, with the promise of sending more back. Such offers are always scamming. 

Coinbase cautions users to be skeptical of offers of higher than usual returns on ‘unrealistic’ investments. According to them, it probably is if it sounds too good to be true. 

According to Coinbase, those interested in investing in any cryptocurrency should take ample time to research any platform to plan on buying through. Communicating with company staff is essential, but you should also ask other, more experienced traders for advice. 

An Educated Buyer is a Happy Buyer

With the boom the crypto market is seeing right now, it’s no surprise how many people want to invest, but there will always be those looking to take advantage of buyers. Cryptocurrency can be an incredibly lucrative investment, but you must have an in-depth understanding of what you’re getting into. Don’t be frivolous with your money. Be patient, be informed, and hopefully, you’ll see positive returns in no time if all goes right.

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