What are the cryptocurrency abuses you need to be aware of?

Cryptocurrency scams have rocked the financial industry since the day bitcoin became famous and unfortunately, it is estimated that more than a billion dollars have been lost to such scams. At the same time, millions are lost every year due to such scams. We expect that you will not fall for such scams and therefore we bring you this very article that will help you in one way or another to learn about the large number of crypto scams that exist.

These are the types of cryptocurrency scams –

Gift scams

It is incredibly unlikely that anyone has a legitimate sweepstakes that will require you to send your own money first. You have to be careful with these types of text messages on social media. They can be derived from accounts that might look identical to the types the individual knows and likes, but this will be part of the trick. As for the many responses thanking said accounts for their special generosity – they are just fake company accounts or bots involved in giving scams.

Fake mobile apps

Once a user installs a malicious application, everything may appear to work as intended. On the other hand, these programs are specifically made to steal your cryptocurrencies. Within the crypto room, there have been many cases where users have downloaded malicious apps whose developers have impersonated a major crypto company.

In such a scenario, when a user is presented with a funding agreement, usually a wallet, or to receive payments, they actually send cash to an address owned by the fraudster. As for the exchange rate, once the cash is transferred, there are no undo buttons.

Pyramids and Ponzi schemes

In a Ponzi scheme, you might notice an investment opportunity with some profit, which is the first red flag. Generally, you will see this particular scheme disguised as a portfolio management service. In reality, there is no magic formula here in the office, the “returns” that are received are just the money of other investors.

In the new pyramid scheme, individuals need a bit more work. At the top usually, the pyramid will be the coordinator. They will recruit a certain number of men and women to work at a certain level below these people, and each of the people, male and female, will get their own amount of people, and so on. As a result, you end up with a substantial structure that grows exponentially and results in new levels being created and masked into a pyramid.