What are the cryptocurrency abuses you need to know about?

The fraud with cryptocurrencies has shaken the financial industry since the day Bitcoin became famous, and unfortunately, it is estimated that more than a billion dollars have been lost in such fraud. At the same time, millions are lost from such frauds every year. We expect that you will not fall victim to such scams, and therefore we offer you this article, which in one way or another will help you learn about the many existing crypto-scams.

These are types of cryptocurrency fraud –

Scam with gifts

It is incredibly unlikely that someone will conduct a legal distribution that will require you to send your own money first. On social media you need to be careful with these types of text messages. They can be derived from accounts that may look the same with types that a person knows and really likes, but that will be part of the trick. As for the large number of responses with thanks to the mentioned accounts for their special generosity – it’s just fake company accounts or bots involved in gift fraud.

Fake mobile apps

Once the client installs the malicious application, it may seem that everything will work as intended. On the other hand, these programs are specifically designed to steal your cryptocurrencies. In the cryptocurrency there were many cases where customers downloaded malware, the developers of which pretended to be a large crypto company.

In such a scenario, when a user is offered a deal, usually to finance a wallet or to receive payments, they are actually sending the cash to an address owned by the fraudster. As for the course, there are no cancellation buttons when transferring cash.

Pyramids and schemes Ponzi

In the Ponzi scheme you can notice the possibility of investing with a certain return, which is the first red flag. Typically, you will see this particular scheme disguised as a portfolio management service. In fact, there is no magic formula in the office, and the “income” is just the money of other investors.

The new pyramid scheme requires a little more work for those involved. At the top, usually the pyramid will be the coordinator. They recruit a certain number of men and women to work at a certain level below these people, and each of the men and women will get their own number of people and so on. As a result, you get a substantial structure that grows exponentially and leads to the creation of new levels and camouflage under the pyramid.