With all the popularity of cryptocurrency, investing in it means taking on risks, but getting scammed shouldn’t be one of them. Scammers are cashing in on the hype around cryptocurrency and luring people into bogus investment opportunities in record numbers.
Scammers tell people to pay in crypto for the right to recruit others into a program in turn for rewards paid in cryptocurrency. The more you pay, the more money they promise you’ll make, they say. In most cases, duped investors are just sending coins directly to a scammer’s wallet.
From October 1 2019 through March 31, 2020, people submitted 570 cryptocurrency investment scam reports indicating $7.5 million in total losses. Those numbers are expected to rise in 2021
Recently, James Bernard ,Regional Representative, Europe of the Dubai Multi Commodities Centre (DDMC) gave a few pointers to help detect a crypto scam;
“Look at the project like you would any company that you’re investing in. Look at the team, look at how long they’ve been in existence. They may have other projects. Look at what their future plans are, not just their one page white paper. Don’t jump into it. There’s plenty of time, plenty of protocols out there to invest in, but I think it’s very important to make sure there’s some sort of reality behind it and that you believe what the project is going to achieve and that can be turned into a real life situation, not just air,” said Bernard.
Now, If you are sent a text, email, or get a message on social media that tells you to send cryptocurrency, it’s a scam. This is true even if it’s a popular person making videos on Youtube, you still have to do your own research.
In conclusion, while crypto investment scams top the list as the most lucrative way to obtain cryptocurrency, scammers will use whatever story works to get people to send them crypto. Remember this, promises of guaranteed huge returns or claims that your cryptocurrency will be multiplied are always scams.
