Everyone has heard of cryptocurrency. They may love or hate the idea of digital currencies, but it can’t be denied they are popular. Although the sector is incredibly volatile and people are skeptical concerning the value of virtual currencies, it seems abundantly clear they are here to stay. Crypto scams are a major danger, but with the right precautions, you can keep your money safe.
Is Crypto A Scam?
Crypto skeptics are quite vocal. We hear them allege that cryptocurrency has no actual value and even go so far as to assert that crypto is a scam. However, there isn’t anything inherently fraudulent about digital currencies. If that were the case, why are central banks developing digital currencies that are levered to national fiat currency?
It can’t be denied that digital currencies are convenient, especially in an era of ecommerce and online investing. The major drawback, however, is the prevalence of crypto scams, which seem to be increasing by the day.
If you want to use cryptocurrency safely, it’s important to understand the risk of crypto scams, what to look out for, and what steps to take towards crypto recovery.
How Do Crypto Scams Work?
Cryptocurrency may be relatively new currency, but the methods of crypto scams are as old as time. Any type of fraud can be a crypto scam if they accept digital currencies as a payment method. Others depend specifically on the dynamics of cryptocurrency, such as bitcoin mining scams.
The basic structure of the biggest crypto scams is to promise something to a target, get them to act quickly and hand over their cryptocurrency and then disappear with the funds without providing the product or service.
What makes crypto recovery more of a challenge and digital currencies the payment method of choice for today’s fraudsters is they can make transactions on the blockchain while remaining anonymous. Unlike bank wire transfers and credit cards, there isn’t identifying information on bitcoin wallets.
However, fund recovery experts such as Broker Dispute have the tools and methods that can unmask identities behind anonymous crypto wallets. We have methods that crypto scams aren’t expecting and we can find out who they are.
What Are the Biggest Crypto Scams?
Crypto scams are the fastest growing types of fraud today. The following are the most common types of bitcoin scams.
Crypto Trading Scams
We may see examples of bitcoin trading scams every day. We are confronted with them on social media, when doing searches, online ads and email and whatsapp spam. We can all imagine how a typical crypto trading looks or is worded. They may promise a trading opportunity of a lifetime or say that traders become millionaires and billionaires.
We may think it’s easy to avoid believing exaggerated claims like these. However, it’s important to remember that many crypto trading scams masquerade as legitimate brokers. It takes looking a bit more closely and knowing what the red flags are to realize a broker is a scam. Unlicensed brokers, those without transparency and with no contact information, with unreasonable fees and vague terms and conditions are often fraudulent.
Whatsapp Crypto Scams
Whatsapp has facilitated communication and makes it easier to connect. However, this platform also makes it easier for crypto scams to access new targets. Fraudsters love to join Whatsapp groups and to spam the group. Administrators often delete these messages, but not before they’ve reached people and perhaps convinced them to open an account.
Whatsapp, unlike other platforms, has very limited policing of fraud. That’s why crypto scammers that start on social media encourage their targets to communicate with them on Whatsapp instead.
Crypto Mining Scams
Crypto mining isn’t so easy to understand–at least not in detail. All most of us know about it is it’s the way to literally make money in cryptocurrency. Bitcoin and other types of cryptocurrency are produced through mathematical problems solved by supercomputers.
Even people who can’t solve these complex math problems or have in-depth technical knowledge about how bitcoin mining really works may want to invest in cryptocurrency production. This is the basis of bitcoin mining investment.
Although there are many legitimate bitcoin mining opportunities, a large number are nothing more than crypto mining scams. As with other crypto trading, make sure the people involved are licensed, transparent and verified.
Crypto Romance Scams
Since the 21st century began, people have been looking for love online. We know of many people who have found their second half on the internet. After all, what else do we have to risk besides heartache? However, there are greater risks than merely a broken heart. Crypto romance scams can break our finances.
They say “love is blind.” It’s important, though, to open our eyes once an online love interest talks about money. Once someone you are interested in says they need money, it’s time to drop them. Once we are emotionally involved, this may be a challenge, but it’s important to put our hearts above our heads when it comes to money.
Is Crypto Recovery Possible?
Once money is stolen on the blockchain, too often victims feel it’s lost forever. That isn’t the case. With Broker Dispute experts, you will have the tools you need to approach authorities. We will consult with you, launch a full crypto investigation and create a crypto report that will bolster your case. We’ll give you guidance on approaching the authorities and map out a strategy that will improve your chances of fund recovery success.
Have You Lost Money to a Broker Scam? Talk to Us?
Broker Dispute professionals are the people to contact if you suspect you’re dealing with a scam broker or another type of fraud. We have the expertise and the technical solution to unmask information about crypto scams. We will launch an investigation and create a report that will boost your claim and assist you with fund recovery.