Cryptocurrencies are a revolutionary way of making transactions or trading online. With thousands of digital coins on the market since Bitcoin premiered in 2008, there are many ways of using and investing in cryptocurrency. Unfortunately, the number of crypto scams is also rising. Currently, crypto scams are eclipsing forex trading scams as the leading form of online fraud.
If you have fallen victim to a crypto scam, forex trading scam, or other frauds, it is essential to file a crypto complaint with authorities and regulators and contact fund recovery specialists.
Broker Complaint Registry is the right place to turn when you have lost money as a result of hacking and identity theft. We consult with clients and refer them to experts who can pursue their cases in detail and work to investigate the hackers or the broker, and in many cases, succeed in fund recovery. Talk to us today, and we can provide guidance on how to deal with the claim.
What Are Crypto Scams?
Crypto scams are frauds involving cryptocurrency. Since cryptocurrency is used as a trading vehicle and as a way to buy and sell items, the range of cryptocurrency scams is broad. The complexity of solving crypto scams relates to the way cryptocurrencies works and blockchain technology.
Cryptocurrencies are a fully digital form of money. They do not have a physical equivalent and are trading and used entirely online. There is no central government bank regulating them unlike currencies associated with countries. Cryptocurrencies are managed through the blockchain which operates using ledger technology.
All of the transactions are recorded on the blockchain, but the identity of the people making the transaction is hidden and expressed through codes. The lack of direct and open identification of transactions with the people behind them has led many scammers to embrace cryptocurrency as a way to hide their transactions.
However, contrary to the widespread belief that transactions on the blockchain and can’t be traced, fund recovery companies, law enforcement, and regulators have enlisted the aid of tech experts and managed in many cases to successfully unmask cyber crimes. This information should encourage those who are victims of crypto scams not to give up hope in fund recovery.
Types of Crypto Scams
There are many types of crypto scams. Some of the most common varieties include:
- Social media imposter crypto scams
- ICO scams
- Fake crypto wallet scams
- Forex trading crypto scams
- Bitcoin Phishing
Social media imposter crypto scams are at the top of the list because they are the fastest-growing type of crypto scams. Although social media platforms have stepped up rules on fake identities, many cybercriminals slip past the system and successfully fabricate identities on platforms such as Facebook, Twitter, and Instagram. Some manage to hack others’ accounts so they can launch their scams from actual accounts.
When people “overshare” on social media, that doesn’t just refer to people talking in too much detail about their personal lives. Friendships often form on social media and people build trust even in situations when it isn’t merited. They may trade financial advice or ask questions. In many cases, these could be scammers with fake identities encouraging users to trade bitcoin. They end up simply pocketing the money and disappearing.
ICO scams are fake opportunities to invest in a new digital coin. ICO stands for Initial Coin Offering and is to a digital currency what an IPO is to a company. There are legitimate ICOs. although according to Investopedia, a staggering 80% of all ICOs are fake.
Most of the fake ICOs take place on social media platforms. That is why it is important never to invest in an ICO that is not on a platform designed for that purpose. Be careful of getting involved in any deals advertised on social media, particularly ICOs.
People purchase crypto wallets to keep their digital coins safe, but if these wallets and apps are scam sellers, they may contain malware or be programmed to take the crypto-coins from the user. It is always important to check carefully before downloading an app or another cryptocurrency service.
Just as forex trading scams lure potential clients into trading opportunities that turn out to be fake, the same is true of brokers who offer cryptocurrencies as a trading product. Work only with a broker that has a current license from a top-tier regulator. Research your options carefully before trading with any broker.
Another type of forex scam that involves cryptocurrencies occurs when a scam broker demands cryptocurrencies as the sole method of payment or for funding accounts. They will then steal the cryptocurrency and disappear. Because of the widespread belief that bitcoin can’t be traced, they believe they can get away with this form of theft.
How to Avoid Crypto Scams
There are several precautions to take to avoid crypto scams, including:
- Do not give your cryptocurrency information away to anyone
- Use only an ICO platform for investing
- Research all crypto products, ICOs, and brokers
- Do not trust a bitcoin wallet just because it is on Google Play or the Apple Store. Check carefully all merchants of crypto products
- Use only a regulated broker for crypto trading
- Be suspicious of anyone who asks for cryptocurrency as the sole method of payment
If you have lost money in a crypto scam, you are not alone. Crypto scams are a leading cause of fraud. It is essential to report the incident immediately to authorities and seek guidance on fund recovery efforts. Do not lose time in dealing with this issue, since the sooner a crypto scam is reported, the more effectively it can be dealt with.
Have You Been the Target of Fraud? Broker Complaint Registry Will Help
Contact Broker Complaint Registry experts if you need assistance with a complaint relating to scams. We deal with a variety of issues, including data theft, forex scams, and crypto scams. 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.