As cryptocurrency is getting more attention from people, it increased the frauds of scammers. Scams in this world have been increased with the increasing popularity of blockchain technology and cryptocurrency.
As this is a high technology platform, the scammers of the Olympic level, who are technology experts will be doing great frauds. Recently, a scam was common with the name of Squid game, and investors were thinking that it’s a new cryptocurrency SQUID token, but that was a complete scam. They disappeared from the scene when the price of currency was skyrocketed, and they did a scam of $3 million.
This is also called virtual currency; it is not like the traditional currency. As these are not backed by any bank or government. These currencies are protected by cryptography and you can use them to exchange. Click here for more info
Bitcoin is the common and known cryptocurrency, it was skyrocketed to about $20,000 in the year 2017, and giving the gain of 2000 percent annually. Several cryptocurrencies were known before, but after reaching their value to the sky, now it is becoming more popular. Another cryptocurrency named ” Great Crypto Crash” was very popular in 2018. Other platforms of cryptocurrency have been extended, to offer its customers to trade in cryptocurrency exchange with traditional currency or any other digital currency.
As in the case of any other financial instrument, specifically, when it has become much popular among the public and has gained their interest, there are many opportunities to scam investors. In recent years, we observed that government attorneys are talking more about the frauds of virtual and cryptocurrencies.
As there are many frauds and scams, whistleblowers are also playing their role to enforce the efforts of CFTC, SEC, and IRS. From October 2020 to March 2021, about 7,000 people have lost approximately $80 million because of its scams. This month, a year ago it has been recorded that 570 investments in cryptocurrency faced scams and lost the amount of $7.5 million.
As these scams are common, for the last three months about $80 million value of cryptocurrency is being frauded by just Americans, and according to the report of FTC 44 percent of losses are by the people of 20 to 39 age.
It has been reported that scammers are introducing new ways to dough people into investing in cryptocurrency. Different scammers just target a consumer by offering tops to invest online than redirect them to the sites that are fraud. Another scam is in which it is pretending to be some celebrity by a scammer, like Elon Musk, and trick a consumer by sending him cryptocurrency and promising him to contribute to his investment. Sometimes scammers claim to be an agency or nominative of government, or from a company that is associated with cryptocurrency.
Types of frauds in cryptocurrency
Financial Activities frauds
As it’s instantaneous trading and has approached internationally, there are many chances to use it as money laundering, to avoid taxes and bribery.
Initial Coins offers
Initial offers of coins are an unsophisticated way to have gain cryptocurrency.
Scammers try to manipulate markets, in which cryptocurrencies are derivate and traded in products like cryptocurrencies. If you have lost your amount or are a victim of this type of scam you may recover your amount through Duo Labs.