Cryptocurrency scams and frauds

source

In this market we have to be extremely careful, infact the cryptocurrency market calls for extreme caution because if we are not careful enough we easily fall into scams that will lead us into losing our money in a number of ways we never imagined.

Scammers and fraudsters have infiltrated almost even sector in this modern era and often looks for ways to make people lose their money, as you working diligently and hard to make an honest living and survive there are those whose hardwork dwells primarily on trying to steal those same funds and honestly at times it seems they even work harder than you do that's why you need to be extremely cautious as they are always looking to mislead.

Cryptocurrency is no different, here we have some notable example of scams and frauds that we especially need to be wary of if we don't want to incur losses like we have never known or experienced before.

Today I will be discussing some cryptocurrency scams which would serve as an arm for us against the space so we are properly informed and don't fall into such traps.

Some frauds/scams prevalent in cryptocurrency

We have ponzi schemes, this is a scam popular in this space where people use cryptocurrency as an investment site often promising much returns to those who invest in them and the goal is to attract you with this attractive returns it offers which makes it appealing to many and hard to pass by, in the name of cryptocurrency such ones orchestrate this known scam or ponzi and it's such that you mostly need only small funds to invest.

Invest little and earn big, ofcourse greed has always been in the nature of humans and they know this and capitalized majorly on this making people to be tempted to invest, and at first they will start out paying people but eventually they fold and collapse most times the people left with nothing are those who invested late they are often left holding the bag and this people puts cryptocurrency in a bad image and I have seen so many of this cryptocurrency ponzi investment schemes like the one of trx and ethereum which ended up collapsing at the end leaving investors stranded.

So we should not be naive and be very careful not to fall into this ponzi scams ifnot our stay here would be very short and painful and we might end up blaming cryptocurrency.

We have one known as phishing link which is another means of orchestrating and carrying out coordinated scam attack on newbies, this people often trick people into clicking links in various social media platform and this could be in form of Facebook of email or any other social media or even steemit here and you would click the link possibly putting your details believing it's legit taking you to where you desire but then that's just an effort to lead you to reveal your wallet password or breach it's security so they gain access and do away with your funds, so phishing scam is one such scam we should be aware of here in the cryptocurrency space.

We have often heard about ICO that's initials of initial coin offering and it's often a means for new project to raise money by making people invest in them at earlier stage and this investors are drawn to it with the believe that they will make much more when the coin hits the market believing it will perform well as they trust that's a good project but often the reverse is the case.

Sometimes not all coins who are doing ICO are legit project infact some people knowingly come together to organize this ICO to make people believe in it's authencity and they buy in only to lose their money eventually they make people invest in their ICO fake tokens with promise of big lunching and they investors don't know that they are scams and merely looking for enough money to make a way with and once they have had their fill and their greed is satisfied they abandon the whole thing.

So we should also be careful and do well to carry out proper research before investing in ICO tokens as there are scams there too and infact that's part of the cryptocurrency scams.

Another scam present here is the infamous pump and dump scheme and we know what usually happens here as this fraud could be initiated using social media who hype or make people believe that a project has potential it doesn't or that a coin is going to do particularly well in the immediate short term which thus makes people to buy in with hopes of getting good return without actually knowing they have been fooled and once this happens this frauds are usually the first to sell off their holdings and the rest of the people invested are often left holding the bag and holding tokens that could never amount to anything.

Some other kind of scam also dwells majorly on the aspect that many have often fallen victim to ransomware where they have to do the bidding of this malicious individuals and often this could happen when you allow your files become vulnerable to the point that this malicious users or frauds get access to it and actually encrypt it making it hard for you the user to access your files now they hold on this files and make a demand.

This is often like when your loved one is being kidnapped and you have to pay a ransom before the kidnappers let them go in this case your files have been encrypted denying you access and you have to pay whatever the perpetrator impose on you ifnot you end up losing your files and this demands requires you deposit cryptocurrency to a provided address so this is another type of cryptocurrency scam or fraud.

These are all some of the ways or forms of cryptocurrency scams and frauds.

Conclusion

Indeed for all who are into cryptocurrency especially for newbies but also for those who have been here long they should know about this scams and where they are often prevalent which will help us all better navigate our way and starve this nefarious and malicious individuals who will run out of work with no one to scam