Owing to the pandemic, all of us have been trapped in the four walls of our house. With technology playing a chief role in the pandemic by creating a link for the people to connect with each other and move on with life, as usual, the online version of trading has gained popularity. Cryptocurrency or digital currency has been the fan-favorite for quite some time with their values reaching for the stars. The growing technology and fast-paced world have accommodated cryptocurrency in basic life actions as well, keeping almost no difference between them and the physical cash that we have. However, as Newton’s third law stated that every action has an equal and opposite reaction, the world of cryptocurrency too quickly gave birth to an enemy.
According to a report released by Action Fraud, UK’s fraud reporting service, cryptocurrency scams have increased to a whopping percentage of 57 in the year 2020. This year marked the flow of 5581 reports against scams revolving around cryptocurrency. Scams have become a part of our lives, owing to the anonymity factor of the internet. scammers are around every corner and on a constant lookout to scam innocent people at the right opportunity. 2020 marked a total loss of 113 million euros to these cryptocurrency scammers. Leaving a close margin, 2019 experienced a loss of 76.6 million euros.
How it works:
The place of common occurrence for all these cryptocurrency scams is emails and social media. With fake advertisements and messages curated to build psychological pressure over the readers, these scammers successfully capture many of the innocent and unsuspecting investors. In the name of the various limited period offers and claims that sound too good to be true, these scammers convince the customers into investing more and more money till they realize that they have been scammed. Even in the population of people who have been scammed, a significant proportion of people do not move forward with the complaint as they feel too embarrassed to be in that position. One must know that scams are very common and can victimize anyone.
Action Fraud urges people to be extremely careful and stay away from unsought crypto investment opportunities or other crypto-related services on social media platforms, through cold calls or emails. In another statement issued by the Financial Conduct Authority or the FCA in January, the regulation called out all the investors who are investing in a certain scheme due to the promises of high returns and told them to be prepared to lose all of their money.
According to all the crime reports, it is clear that most of the money laundering activities and other illegal activities involve cryptocurrency due to their nontraceable features. The president of the European Central Bank, Christine Lagarde sought a global regulation of bitcoin and other cryptocurrencies to reduce the crime involvement in cryptocurrency.
In an attempt to combat the issue of cybercrime revolving around cryptocurrency, the Crown Prosecution Service has been planning to open a special crime court reserved for cybercrime, economic crime, etc. in London.
In times like this, all we can do is to be extremely alert and read the latest news to steer clear of all the cryptocurrency scams. Always invest with regulated firms and safeguard your money.