The rate of crypto being hacked and stolen has been rising at an alarming rate. According to an analysis by StockApps.com in October 2022, the value of crypto hacked and stolen was $1B+.
StockApps top analyst, Edith Reads, remarked on the data. She said, “Crypto frauds are becoming more popular day after day. You’d think criminals would slow their activity due to the crypto meltdown, but it’s not happening. As the crypto market tries to steady, scammers and hackers are on standby. Any little opportunity, they wipe you out clean. Everyone should be alert and have elaborate security schemes to protect their assets.”
Most victims of scams attribute their loss to investment opportunities on social media platforms. Instagram and Facebook are the most notorious platforms for fraudsters. They use attractive posts and videos to entice people into sending them money. Some promise high returns quickly, while others pose as crypto exchanges or brokers.
Some scammers have also used Ponzi schemes to wipe investors clean. A federal court in San Diego, California, issued an indictment against the creator of BitConnect in February. They accused the creator of running a $2.4 billion global Ponzi scam.
The company’s creator misled investors about cryptocurrency funding. He talked about tech offering investors significant returns by following crypto exchange markets.
Besides, courts charged the CEO of Mining Capital Coin in May 2022. He was in the middle of executing a $62 million global investment fraud scheme. He lied to investors and promised huge returns from mining new cryptocurrencies.
Most scams guarantee huge returns. Unfortunately, all they do is transfer their victim’s cryptos to their wallets.
Con artists constantly develop novel approaches to stealing money by exploiting cryptos. To avoid falling victim to a crypto scam, familiarize yourself with the following information.
Con artists insist on cryptocurrencies as the sole payment mode. No legal firm on the planet will ever require you to send Bitcoin in advance, not to buy something, and not to keep your money safe. That is never anything but a con.
Only con artists will guarantee you profits or significant returns on your investment. Do not put your faith in individuals that guarantee you may easily and rapidly make money in the cryptocurrency markets.
As more people understand the con game, the con artists mutate and develop new strategies. Investors should look out for anything strange before they effect that transaction.
Never give your private keys to anyone. Your private keys are the only thing that gives you control of your cryptocurrencies. Once someone has access to them, they can empty your wallet without a trace.
The best way to keep your cryptocurrencies safe is by storing them in a hardware wallet. A hardware wallet is an offline device that stores your private keys and public addresses. It only allows transactions after you confirm them physically.
It would be best if you also use two-factor authentication wherever possible. Two-factor authentication adds an extra layer of security to your account.
Edith is a fintech expert and a trader with over 10 years of industry experience. She is knowledgeable about blockchain, NFTs, Cryptocurrencies, and stocks - all from an informed perspective that will help you make better decisions when it comes time to invest your money.
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