Even though cryptocurrencies have a lot of advantages over fiat currencies, the crypto market is the field where scam happens mostly. It is the easiest place to scam people and had happened many times.
Top Cryptocurrency Scams
Now people started to purchase and trade more cryptocurrencies and this makes lots of opportunities for criminals too. In this article, we discuss some top cryptocurrency scams that you should be beware of.
The majority of the crypto tradings occurs through crypto exchanges. But they buy a huge transaction fee for handling the trading process. You can’t trust anyone of them completely. The largest and most famous crypto hack occurred in the Mt. Gox exchange. 850,000 BTC disappears in February 2014.
The company found 200,000 of the BTC, but they’re still left 650,000 BTC to found out. Before hacking, Mt. Gox was the largest Bitcoin exchange in the world. It handles around 70% of the trading volume. Unlike other incidents, the attack in Mt.Gox is not a single event. It is reported that the hackers had been skimming coins from the company for years. The root cause of the attack was said to be the lack of coding security of the company.
Some frauds introduce new cryptocurrencies or currencies alternative to bitcoin. They make their customers invest in the fake cryptocurrency. They transfer these funds to their personal bank accounts and disappear one night.
The fraud that happened in the name of My Big Coin was a great example. Frauds behind this have stolen around $6 million from the customers.
Fake Mobile Applications
Fake mobile applications is a common trick used by scammers and hackers. Many such fake apps are now available to download in the play store or app store. Always check the name of the app, coloring, and logo of the app before downloading.
People can be scammed by sending mails that exactly looks like an email from a legitimate company. Verify the email address and the company logo before investing bitcoins with them. They even announce fake initial coin offerings (ICO).
Some malware may help hackers to get passwords and will access your whole computer network. These actions help to steal your coins or bank account details. Hackers also malware to drain out your funds, once your Bitcoin wallet is connected to the internet.
It is recognized that a big risk is involved in new digital money transfer mechanisms. There are many ways for exploiting you and your assets through the internet. So before investing in cryptocurrency, be safe and alert towards scams and frauds. I hope this article provides enough information about those top cryptocurrency scams that you should be beware of.