The year 2022 will be marked as a black year in the dark books of cryptocurrency investment updates. The loss of 70 crores in crypto trading was made because of crypto frauds and crypto thefts which cannot be recovered for a longer duration. Cryptocurrencies always have been considered unbalanced assets. In 2022, it has been proved that they are unstable assets.
In 2022, crypto frauds have caused a loss of 70 crores in Bangalore.
We feel very sorry to hear about this scam in Bengaluru. Unluckily, frauds and scams in the world of cryptocurrency are uncommon and investors should be careful at the time of investing in it or trading on crypto exchanges.
CID blamed the success of crypto trading frauds due to a lack of proper knowledge about cryptocurrency trading.
In 2022 a software engineer received a message from a strange person and that accidental message was followed by a long talk in which the spammer expressed their offers and mentioned the solutions to the monetary problems that an individual may be facing- buy a cryptocurrency and invest it on the portal that the spammer recommends to that guy.
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The person invested some money and later on he found that he was scammed when he stopped receiving messages and answers from the strange guy. This kind of many incidents took place and around 70 crores in crypto trading were scammed.
Be attentive when doing investments
Therefore, as a person, it is vital to do research painstakingly about the exchanges platforms that are used and understand well about the risks that are involved in crypto. One has to always be wary of the promises of assured returns and should not invest in more than investment capability.
In case scams or fraud is suspected, it is vital to report the incident to the authorities and must take legal actions strictly. Plus, it is asked to connect with the financial institution or bank and notify them of any strange activity that took place in the accounts.
Blockchain technology and cryptocurrency have the potential to bring the best benefits to the financial sector, but it is vital to approach them with full caution and care.
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Crypto trading frauds are common occurrences in the world of cryptocurrency. Such frauds take many forms which include phishing attacks, scams, Ponzi schemes, hacking incidents, and so on. Investors need to remain attentive and must take steps to safeguard them against such things.
Common examples of crypto-trading frauds
1- Ponzi schemes
The scammer promises to the investors a high return on the investments made by one and uses the money from new investors to pay the returns to the old ones. When the scheme collapse, the investor loses their cash.
2- Fake ICOs
scammers generate counterfeit ICOs and persuade investors to buy the tokens. After they have gathered sufficient cash, they disappear leaving the investor with a token that is of no use.
3- Phishing attacks
Scammers can produce counterfeit sites and emails that look like they have come from authorized firms. They use sites to steal the login info that they can use for stealing funds.
4- Hacking incidents
Hackers steal cryptocurrencies from wallets, exchanges, and several other sources. After they stole the funds, they sell them in the market.
In order to safeguard against these frauds, investors must invest in reliable cryptocurrencies and exchanges and must use two-factor authentication to keep their private keys protected and avoid any type of investment opportunities to seem true and good.
Additionally, it is vital to stay knowledgeable about the newest trends and developments in the cryptocurrency world and to be wary of any suspicious activities.
Also Read: Cryptocurrency