What are the abuses of cryptocurrencies that you need to be aware of?

Cryptocurrency fraud has shaken the financial industry since the days when bitcoin became known, and unfortunately, it is estimated that more than a billion dollars have been lost in such fraud. At the same time, millions are lost every year due to such scams. We expect that you will not fall prey to such scams and therefore we bring you this article that will help you in one way or another to find out about the large number of crypto frauds that exist.

These are the types of cryptocurrency scams –

Gift scams

It is incredibly unlikely that someone has a legitimate prize game that will require you to send your own money first. On social media, you have to be careful with these types of text messages. They can be derived from orders that may look identical to the types an individual knows and really likes, but this will be part of the trick. As for the many answers that thank the mentioned orders for their special generosity – these are just fake company accounts or bots involved in giving fraud.

Fake mobile applications

Once a user installs a malicious application, everything may seem to work as intended. On the other hand, these programs are specifically designed to steal your cryptocurrencies. Inside the crypto room, there were many cases in which users downloaded malicious applications whose developers faked it as a large crypto company.

In such a scenario, when a user is presented with a contract to finance usually a wallet or to receive payments, they actually send cash to the address held by the fraudster. As for the exchange rate, when cash is transferred, there are no cancellation buttons.

Pyramids and Ponzi schemes

In the Ponzi scheme, you might notice an opportunity to invest with a certain profit, which is the first red flag. In general, you will see this particular scheme disguised as a portfolio management service. In reality, there is no magic formula here in the office, “returns” are just the money of other investors.

In the new pyramid scheme, individuals need a little more work. At the top usually, the pyramid will be the coordinator. They will employ a certain number of men and women to work at a certain level below these people, and each of the people, men and women, will get their own amount of people, and so on. As a result, you end up with a significant structure that grows exponentially and results in the creation of new levels and masking in the pyramid.