Due to the Increasing importance of Cryptocurrency, the virtual money around the world, it will be an important topic to discuss about the scams on it.
Many of us would have definitely came across in our friends circle on this topic to invest on Cryptocurrencies such as bitcoin or Etherium.
What is Cryptocurrency?
Cryptocurrencies are virtual Money or virtual currency that are secured by Cryptography. Many of them are based on Block-chain(A kind of Ledger) Technology.
Making of Cryptocurrencies needs super power computers to do mining with arithmetical and cryptographic computations.
Though its a good one to go with, it is also important to know about the disadvantages and scams that lies within.
What is a Scam?
A way to trick people to steal money under false pretenses. It Happens due to the advantage of people’s trust and negligence.
Cryptocurrencies are booming these days in our digital world but unfortunately Cryptocurrencies are not regulated enough to protect people from scams.
Disadvantages and Limitations:
- The main Advantage the scammers take in this one is wide networks. Everything goes online anonymously.
- Interaction with the people that you never know, that you neither meet nor visit, you are trying to reach out for the money that you can’t touch(Because its virtual).
- Many of us have seen few people, are really inviting us to make money by joining with them to invest as new player with the investors. Once the pyramid of down-liners has built it will pay off earlier investors until it collapses.
- Creation of new cryptocurrency like BITQYCK and others may also lead the investors to fail in most situations. Status of Bitqyck clearly shows that.
Before we see what are the ways of scams can happen, let’s try to understand why this happens? Greediness, Quick Money, People who think they are smarter, Who wants to invest less and earn more are the real victims to these SCAMS.
- Blackmail Scam: Blackmailing happens when you indulged into something that you don’t want others to know about it. Hackers and Scammers use this opportunity to demand Ransom in Cryptocurrencies, threats. in return to keep quiet. It’s a criminal extortion attempt.
- Online Chain Referral Schemes: This is very prevalent around us these days very much. Someone will promise you that you will make money if you pay into some sort of scheme. But the scammers will ask you to pay money in cryptocurrency or you need to pay first to recruit others into the chain. They can also use words of desire that “you will be rewarded with more cryptocurrency in return” and “Increase of Cryptocurrency value is Huge these days”.
Guaranteed: You will lose Money.
- Business and Investment Opportunities: Another word of Desire is, “Business Opportunity will give you Financial Freedom. Remember only a scammer will guarantee that will money will come regardless of your technical skills.
Recent Hack on Twitter, makes lot of celebrities and richest people in the world to tweet as “All bitcoins sent to my address below will be sent back double the amount. If you send $1,000, I will send back $2,000.”
Who will not believe if a tweet comes out of ELON MUSK’S Twitter Handle.
That trust nature of human beings leads us to a lethal position in our life.
What we can do?
Am not saying don’t invest on cryptocurrencies.
Investments should be in a proper way. Please try to understand and learn how cryptocurrencies works. Buy a super computer to do mining on your own if you want one.
It is mandatory to check for Verified Exchange and Trading Platform before investing.
Beware of Emerging Financial Pyramid Systems.
REMEMBER: No one gives you free money, No one Works for your profit. No one Care for your Security.
Your Security lies in your hands!!
Stay safe and Stay Secure.
Author : Sam Nivethan V J
Security Analyst & Trainer