Cryptocurrency scams and fraud II

Source

There has been some report often associating cryptocurrency with scams and frauds possibly even contributing to tighter regulations from government, truth be told there are various ways people use cryptocurrency to facilitate frauds and scams in this space.

And this kind of leaves a negative remark on cryptocurrency as it makes it look hideous and truthfully inasmuch as cryptocurrency is a wonderful innovation which could be used for lots of good it has often also been used for the wrong cause by people with nefarious and dubious mindset.

They have made and painted cryptocurrency with a bad name, cryptocurrency scams is common today and in various forms and if we are not careful we easily fall prey to this and I advise we strongly be on guard truly in other to navigate ourself well in this space.

I will write on some of the scams today in continuation to my first article on this and some good tips for those of us into cryptocurrency especially those new to the space.

Some crypto fraud/scams

One such act of scam or fraud facilitated using cryptocurrency is usually in the dark web, in the dark web some many malicious users operate there in their various form of dubiousity and commiting crimes like creating counterfeit currency sales and especially identity theft amongst a host of other things one could possibly think of and the thing is that most of this bad stuffs happening here they often facilitate it with the help of cryptocurrency using it as a means of payment for it's anonymity serving as a perfect cover for them to operate untraceable.

The dark web has become home where so many evil plans are orchestrated and carried out and credit card fraud seems like just some of the easy parts of this crimes and yet it seems there is no way to stop them as they only way could have been to trace the payments from whom and to where but ofcourse not as privacy cryptocurrency coin ensures that this information is well protected which is a perfect cover as such facilitating of the activities in the dark web is one way cryptocurrency is being used for scams and fraud.

Also another harmful stuff being done here is that apart from being used as a payment method in the dark web it's also being used in financing international crimes as reports suggest.

Many today are wondering how terrorist are being financed, I mean where is there no bank records of huge transfer before a terrorist attack as it should be or after well it majorly because they don't need the use of traditional banks to transact as cryptocurrency is easily used to fund whatever they need to continue in their menace to the society which all the more creates a bad name for cryptocurrency.

Cryptocurrency offers anonymity, cryptocurrency facilitate cross border payment, cryptocurrency payment method is fast and cheap, all this qualities makes it just a sweet deal for this terrorist to use in their act of terror without being detected, as both crimes in the local level and international stage is made possible through cryptocurrency hitch free transaction.

Another scam here is that most people who operate illegal gambling mostly on dark web who doesn't wish to be under the regulatory umbrella of constituted authority operate hideously in the dark web and crypto is what they often use to run their illegal gambling business, both accumulated winnings and placing of bets in this illegal platform is done with cryptocurrency.

Ofcourse it seems all too easy that cryptocurrency is often associated with almost every scam in this modern era but ofcourse really in everything in life man always decide whether to use it for good or bad, so yes cryptocurrency could be used as a tool for good or for evil depending on the individual, I personally don't think cryptocurrency is bad is the humans who use it for this nefarious use that are.

Infact some newbies here some tips for you 👇

Practical Tips:

Always ensure when setting up an account that your wallet choice is a hardware wallet or atleast try to ensure that the wallet you use it trustworthy and reliable to avoid touching stories.

While you use this trustworthy hardware wallets try to stay inform always on the happenings on the cryptocurrency space and try to keep up to date with latest information this will help you aware of the current tricks used by scammers and fraudsters so as not to be easily manipulated.

While setting up cryptocurrency accounts in exchanges or anywhere else always opt for extra security like the 2 factor authentication and please ensure your choices password is not one that is easily guessed.

Know this and try to avoid clicking on links that you don't understand and that is not coming from a trustworthy source.

Conclusion

With time cryptocurrency maybe able to curb the scams and fraud here and what will especially help is proper regulatory framework, if they government work together and sees cryptocurrency as a force for good it will help to reduce some of this frauds and creates a safe environment for the masses to operate freely in the space.