A Guide to Crypto Complaints
Cryptocurrency represents freedom for many people and new ways to make transactions, invest and convert money online. Many people are fed up with banks, regulations and charges and want to use a currency that is free from central government regulation. The dark side of cryptocurrency is that many scams lurk on crypto sites. It is why making a crypto complaint is important once you realize you have been the target of a crypto scam.
Broker Complaint Registry is the right place to turn when you want to investigate alleged crypto scams or if you have been cheated by a cryptocurrency service or broker. We consult with clients and refer them to experts who can pursue their case in detail and work to investigate the crypto scam and in some cases succeed in recovering funds. Talk to us today, because crypto scams can work quickly to cover their tracks.
What Is Cryptocurrency?
Cryptocurrency is a digital currency that can be used for purchases, payments, and investments just like a physical currency. The difference is that it exists entirely online and is not regulated by any government agency. Instead, cryptocurrencies are regulated by the blockchain which is comprised of a group of computers that record transactions.
The cryptocurrency trend began with bitcoin which was introduced in 2009 and since then, thousands of others are now in circulation. Many people like cryptocurrency because it provides anonymity and ease of use. However, this anonymity can come at a risk.
Is Cryptocurrency Risky?
Cryptocurrency is believed to be safer than regular currency because advanced encryption is used to code and protect all transactions. In addition, since all transactions are recorded and can be verified, it may seem to be a more transparent way of doing business.
However, the identity of those involved is harder to trace. This is what makes cryptocurrency so rife with fraudulent activity because it provides cover for crypto scams. Even though this wasn’t the intent behind the creation of bitcoin, that has been the result.
Types of Crypto Scams
Since bitcoin made its appearance in 2009, there have been numerous other digital currencies that have followed. With an increase in interest in cryptocurrency, the number of crypto scams has also increased. The ease of disappearing behind the anonymity provided by cryptocurrency has led to increased fraudulent activity associated with digital currency.
Many of these crypto scams are centered around cryptocurrencies, such as fake ICOs or apps and wallets. Others focus on the use of digital currency as a payment method, such as blackmail bitcoin scams. Knowing what types of frauds are out there and how they operate can help protect you against falling prey to them.
Fake Wallets and Apps
Crypto wallets and apps are intended to keep your cryptocurrency more secure. However, there are many fake tools on the market that are designed by scammers. Once you purchase or download the product, it will steal your cryptocurrency and your data. Both are valuable to cybercriminals and can be stolen and used easily. It is important to be vigilant concerning crypto services, Don’t assume that any app that appears on GooglePlay, for instance, is necessarily safe. Download and click links only from sites you absolutely trust.
ICO Crypto scams
An ICO is an Initial Coin Offering, just like an IPO is an Initial Public Offering when a company makes its debut on a stock exchange. Like companies, concepts for new coins require investors. Venture capitalists invest in startups hoping that their investment will appreciate in value when the company becomes successful. Those who invest in new coins are also hoping the new type of cryptocurrency will take off.
The sobering reality is that most ICOs are not genuine. Many of the ICO sponsors run off with the money and the investors lose their entire investment. Even those that are legitimate can be risky and few ICOs are successful. If you are going to invest in an ICO, research thoroughly who is running it. Have they worked with reputable companies? Do they have experience with successful IPOs? In addition, do not invest in any ICO unless it appears on a recognized ICO platform.
Blackmail Bitcoin Scam
Receiving a threatening email or text can be disconcerting. When this threat contains a demand for bitcoin or another cryptocurrency, you can suspect a blackmail bitcoin scam. The extortionist will claim to have compromising documents, pictures, or video that will put you in a bad light or destroy your reputation and will demand to be paid in bitcoin to avoid being traced.
It is unfortunate how many people give in to these threats even if they are fairly sure there is no embarrassing material out there featuring them. However, extortionists are skilled at phrasing their threatening messages skillfully to avoid specifics but to induce people to give them money. It is important to seek assistance immediately if you are the target of a blackmail bitcoin scam.
Crypto Scam Phishing
Crypto scam phishing attempts to steal cryptocurrency. There may be a promise of a lucrative investment deal if you will give your crypto information, but the scammers usually disappear. Sometimes if you are trying to get support for using a crypto product, you may be asked to provide information that will give others access to your digital coins. Avoid giving away this information under any circumstances.
How to Make a Crypto Complaint
If you have paid for a crypto service and it isn’t working, if bitcoin is missing after you purchased a crypto wallet or if you are being threatened to give over bitcoin to a complete stranger, it is essential that you make a crypto complaint. Contacting law enforcement seems like a good first step, but keep in mind that they are inundated with crypto complaints. To find solutions that will get results, seek guidance from Broker Complaint Registry.
Do You Need Assistance with an Intelligence Report? Broker Complaint Registry Will Help
Contact Broker Complaint Registry experts if you need an intelligence report on a broker or a crypto scam. We deal with a variety of issues, including data theft, broker scams, and crypto complaints. Our team will refer you to experts who have vast experience dealing with regulators, banks, and law enforcement. We will provide advice and give you valuable guidance to help you resolve the issue.