In the era where everything is getting digitalized, why not the money. There was a time when barter system was practiced in which goods were exchanged for goods.
But with time, it evolved and money came into use.
But, as we say evolution never stops, the conventional currency notes are now evolved into digital currency.
As we say, every coin has two sides, likewise, everything in this universe has both pros and cons. To read more about crypto and its benefits, you may refer to these articles:
Future of Cryptocurrency in India
Buying and Investing in Cryptocurrency
In this article, we are going to discuss the scams and fraud related to cryptocurrency.
Whenever we make any investment, the only thing we keep in our mind is profit.
But, somewhere in our mind, we also know that we have stepped into some kind of risk.
Risks are the keys to any investment.
But, sometimes, we get loss either due to the intelligence of some strangers or our own foolishness.
This is what fraud means, when someone makes use of our negligence to benefit themselves.
Just like every other kind of investment, investment in cryptocurrency is also subjected to the risks of fraud and scams.
So what kind of scams can a crypto user go through?
1. Fake Apps
On any app store, whenever we search for some app, we are shown a list of apps with similar names and similar logos. But, they all can’t be true.
So, it becomes our own duty to find out which one of them is authentic, then only you can have a safe platform to make an investment.
To know that, you can observe the logo, spelling and no. of users and the app details etc.
But, never take the decision in a rush, like take your time, make sure that you are using a secure platform, then only involve your banking details or your money in it.
2. False Websites
Many websites on the internet pretend to be some other, but they are actually cloning websites i.e. fake websites. Investing in such websites can be a state of risk for the investor.
Sometimes, by your own mistake or ignorance, you click on some other website that might not be authentic. To assure that, do check for the small icon of lock in the URL bar, that is meant for security and authenticity of the sites.
3. Never Trust Social Media Blindly
In this generation, where almost every work is somehow related to social media platforms like twitter and Instagram, these platforms sometimes involve you in scams as well.
Never invest in any cryptocurrency mentioned in some post on social media before verifying.
Secondly, don’t exchange or invest cryptocurrencies with some internet friends or some strangers on social media.
Don’t click on any link provided on any non-verified social media account.
After knowing what kind of scams are on the internet related to cryptocurrency, next we need to know how to know whether you should trust the site/platform or not?
How To Know If The Source is Authentic or Not?
Imagine you open a site which allows cryptocurrency investment. But what you notice is, the profit they are offering sounds too good to be true, just get that it is the red flag signal for you.
If you get any link or any site about investing in crypto currency, first verify it. Search for its official website, check for the details of founders and team members, their LinkedIn profiles and their social media handles.
Only after assuring that the site is completely authentic, think of making an investment in it.
Whichever project you are thinking of investing in, first check for their social media accounts. If you see that their twitter page is dead or inactive, think before making the investment.
Investment in cryptocurrency is considered very profitable nowadays, but investing while keeping yourself safe from any kind of fraud is very important.
Recently on 8 February 2022, FBI arrested a couple involved in the largest financial seizure of the agency of $3.6 Billion. They conspired to launder the cryptocurrency stolen.
It shows, how smartly these frauds work, hence to keep our money safe, it is our responsibility to be safe and careful on internet.
Any small mistake can lead to some huge losses, so be extra careful while investing in any crypto exchange platforms.
As we say, Preventions are better than cure, likewise it's better to be careful than regretting afterwards.
Written By: Nidhi Jha
Edited By: Komal Jha
0 Comments