Scams are everywhere online, and cryptocurrency exchanges are no different. As you consider investing in different startups and exchange platforms, be aware of the possibilities of losing your cryptocurrency investments.
The Dubai Electronic Security Centre officially confirmed on Thursday night that the digital currency is known as “Dubai Coin” is not authorised by any administrative body. The site trying to promote the coin is an unlicensed entity aimed at phishing user’s data.
When you’re looking into digital cryptocurrency companies and startups, experts recommend that you confirm that they’re blockchain-powered, which means they track detailed transaction data. Also, check that they have solid business plans that solve real problems. Companies should specify their digital currency liquidity and ICO rules. These crypto scams usually also have great marketing. Victims are the type who is prone to speculative investing; they’ll bite, pouring money into an initial offering to get those “big gains.” Before you know it, they’re seeing no movement in their portfolio.
Cryptocurrencies attract many scammers because it is easier for unscrupulous persons to exit with investor’s money due to the immutable and irreversible nature of blockchain-based transactions, which makes it challenging to recover investor’s funds. The cryptocurrency market crossing total capitalisation of $2.2 trillion has further increased the interest among investors for this new class of asset.
In 2017, South Korean financial authorities and the local Bitcoin community exposed one of the most insidious Bitcoin scams: a fake exchange called BitKRX. It presented itself as part of the largest trading platform in the country and took people’s money.
Fraud websites, Fake Apps ,Scam mails
There are many ways scammers trick cryptocurrency from investors through fraud websites, fake Apps, scam mails. You may be following a solid tip from someone with a lot of expertise but still become a victim by accidentally visiting a fake website. There are many fake websites are out there but it looks like very secure and original, valid startup companies. If there isn’t a small lock icon indicating security near the URL bar and no “https” in the site address think twice.
Another common way scammers trick cryptocurrency investors is through fake apps available for download through Google Play and the Apple App Store. Although stakeholders can often quickly find these fake apps and get them removed, that doesn’t mean the apps aren’t impacting many bottom lines. Thousands of people have already downloaded fake cryptocurrency apps. This is a greater risk for Android users compared to Apple iPhone users. So every investor should be aware of the possibility.
Scammers often announce fake ICOs, or initial coin offerings, as a way to steal substantial funds. Don’t fall for these fake email and website offers. Take your time to look over all the details. Even if it looks exactly like an email you received from a legitimate cryptocurrency company, take care before investing in your digital currency.