Investors lost $5.8 billion in cryptocurrency fraud last year. This is how to keep your money safe

Cryptocurrency is well known. The value of a digital asset can swing roughly in days or hours, and can be both Thrilling and risky investments.

The latest example is Bitcoin values Covers over $100,000 First time in December. It then followed a sharp drop in prices driven by the unknown effects of US tariffs.

In addition to market volatility, there is another dangerous aspect of Crypto Investment: Crypto fraud. In 2024, investors lost $5.8 billion in cryptocurrency fraud. FBI Internet Crime Complaint Center. Adults over the age of 60 reported most cases and the most losses.

Crypto offers scammers a great opportunity. The crypto market is largely unregulated. Once a transaction is created, it is almost impossible to reverse it. That is, if a scammer takes off with your code, there’s little you can do to get your money back.

If you’re actively investing in crypto or are focusing on digital currencies, make sure you know how to find these rich Quick schemes and other tricks.

The number one cryptocurrency scam to watch out for

The potential high rewards of cryptography attract a large number of con artists. These are examples of common crypto fraud.

Trying to phish

Crypto phishing scams come in many forms. For example, it is common for bad actors to pretend to be legitimate interactions and try to trick you into sharing you Private key – A unique passcode that allows access to crypto – Ask you to click on the embedded link in text or email.

Other examples of phishing attempts related to cryptography: According to the Federal Trade Commissioninclude:

• Celebrities who contact you on cryptocurrency opportunities. This happens on social media, but it’s unlikely that real celebrities will contact you on business or investment opportunities.
• Investment managers offer to process the portfolio. They promise to grow your money, but that’s only if you first transfer the code to them.
• New or established companies enter the crypto space. You can be contacted by scammers who claim that the company is diving into the code and offering new coins or tokens. If this is true, it will be widely reported by the media.

Social Engineering

The con man can also force you to build a deep connection with you, manipulate your emotions and make rash decisions, such as getting everything into a new type of code.

“In bull markets, fraudsters are leaning against human greed, promising high returns and exploiting fears of overlooking. In bear markets, they play for fear that codes are at risk.”

Percoco added that investors should be wary of high pressure tactics. “The con artists know that if they do nothing in the end they will lose. They will take your time and research opportunities carefully.”

Rug pull and fake tokens

Developers often create tokens designed like legal crypto coins to attract cryptocurrencies that buy investors. Once the purchase is made, the scammer will take your money, disappear, leaving nothing left except for the counterfeit token.

Often, this scam occurs when bad actors encourage investors to act quickly to take part in new crypto projects before priced skyrockets. If you’re not sure if a token is legal, make sure to research the assets, their website, the founder of the project, and digital coin transaction activity. If the website does not exist or the project creator is anonymous, it may indicate a high risk.

Bitcoin ATM Scam

In this scam, cybercriminals attempt to catch you by pretending to be a law enforcement or financial institution. A scammer may tell you that you need to pay the fine or that the bill is due. To avoid legal action, scammers instruct them to use Bitcoin ATMs to send funds.

A legitimate entity would do so Not once Request payment via Bitcoin ATM. Such requests should be completely ignored.

What happens if I fall into a cryptocurrency scam?

If you fall into a cryptocurrency scam, you will rarely get your money back. What makes these scams attractive to cybercriminals is the irreversible nature of cryptocurrency transactions. Scammers can transfer it to any part of the world, making it difficult to track money even after it’s sent.

“Investors need to take careful and thoroughly research before tackling cryptocurrency platforms or investment opportunities,” said Jacqueline Cooper, CEO of Blockchain Legal Institute.

However, you need to report the scam to catch hackers and help others avoid the same fate. To report cryptocurrency fraud contacts:

• With the FBI www.ic3.gov
• With ftc Reportfraud.ftc.gov
• Your local Attorney General’s Office
• If applicable, the legitimate crypto exchange company you used to send the funds.

The goal of most scams is to steal cryptocurrency, but you can also compromise on your personal information. Social engineering tactics often extract delicate details, and Personal information theft A broader financial fraud.

Consider Freeze your credits Free Equifax, Experian, Transunion To prevent scammers from opening new credit lines in your name.

Education is your best defense against crypto fraud

If selected Invest in cryptojust use it Verified Cryptocurrency Exchange. Experts suggest investing only on what you are comfortable with.

Please do not click on a link sent via email, text message or social media to provide you with personal, identifiable information about your whim. If something feels bad and you are under pressure to make a quick decision, think of that red flag. Always take your time when making financial decisions.

By verifying your platform and protecting your personal information, you can confidently thwart crypto fraud and navigate the crypto world while minimizing risk.

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