Due to the huge demand for cryptocurrencies and the rapidly changing landscape, there has been a surge in cryptocurrency-related scams. As a result, it is critical for investors to protect themselves from rogue crypto exchanges and tokens.
Every investor and non-investor is a target for con artists attempting to make quick money by preying on people who will do anything to get rich quickly.
In the recent past, cryptocurrency price movements have been extreme, with Squid Game-based coin SQUID, Kokoswap, and Ethereum meta soaring thousands of percentage points in a matter of hours. Many tokens have also plummeted in value, trapping investors.
“Crypto has gone mainstream,” said Shashi Prakash Jha, head of legal and compliance at WazirX. “While we are seeing increased participation from the youth, retail, and corporate investors, we understand the responsibilities that come with trading in a high-risk asset class.” Every investor and non-investor is a target for con artists aiming to make quick money by manipulating people who will do anything to get rich quickly.”
Furthermore, it is critical to invest only after conducting due diligence on a project, including reviewing their whitepapers (to ensure that they follow know your customer and anti-money laundering guidelines), the founders’ backgrounds, and the quality and reputation of the exchange’s customer support infrastructure.
Currently, there are no particular AML/CFT requirements for crypto exchanges in India. In the case of VASPs, however, all stakeholders freely adopt the c proposal. The exchanges also work with states, federal agencies, and international organisations to share and build international best practises on anti-money laundering and counter-terrorist financing.
Here are some of the most common cryptocurrency scams in the United States:
Scams with freebies
The utilisation of giveaways or free prizes is one of the most popular crypto frauds in the country. Scammers take advantage of the fact that everyone enjoys getting a prize. Typically, these types of programmes will offer a reward or a prize in exchange for your authentication information. Many of these con artists will track you down on social media.
Scammers posing as ZebPay, one of India’s top crypto trading platforms, recently offered free bitcoins to anyone willing to give one bitcoin to begin the transaction on social media.
The greatest approach to avoid being scammed is to just ask yourself, “Is it too good to be true?” If you said yes, there’s a good chance it’s a con.
False Technical Support
Scams posing as technical support are easy to fall for. Scammers imitate a company’s customer service phone lines and social media accounts. This lends them credibility in the eyes of the public. They’ll frequently ask for your security codes and passwords after that.
To avoid being a victim of this scam, you should be aware of the platform’s or company’s correct social media accounts and support numbers. Remember, even with the necessary authority, you should never divulge your passwords or security details. Exchanges, like banks, will never ask for personal information.
Scams in the fishing industry
A bogus website set up by the scammers will try to fool you into providing vital information in this scam. These sites frequently appear to be real. Scammers will also send emails that appear to be from government agencies.
To avoid these scams, do not open emails from unknown sources and bookmark the sites you use to trade cryptocurrency.