Cryptocurrencies are increasingly gaining popularity and are slowly seizing mainstream media attention among traders, followers, and market analysts alike. With the increase in popularity of cryptocurrency tokens for trade, frauds and scams are increasing at an alarming rate since the start of 2021. With more decentralized platforms to choose from every day, it is getting harder to differentiate fraud and legitimate platforms for trade. Although some decentralized finance platforms allow traders to secure maximum profits through interests, others that intend to scam users promise huge profits and ultimately secure their finances for their use and trade. As cryptocurrency trades value privacy, most of the transactions in question are untraceable, making it a preferred choice for large fraudsters to loot funds from traders through untraceable channels of payment.
Many non-fungible token scams also speed up in the market nowadays, which run at the risk of duplicating by hackers or scammers too, turn, trade, and transfer of funds by duplicating the user base and accessing their files and tokens from anywhere. There are many alt coins in the crypto trade, and they are commonly being used to dupe the newer traders by attracting them with many offers and promises to increased profits.
Many reports of increased cryptocurrency wallet hacks have been reported in the recent past, depicting other common ways hackers and scammers try to take control of cryptocurrency wallet by infecting one’s devices with malware and viruses. Malware spreads like wildfire, and after a tedious process of infecting someone’s devices, the defaulters hack trader’s machines with configured wallets and conduct transactions without their knowledge.
Choosing the right cryptocurrency to trade concerning someone’s situation is a key factor in how the trade is going to go forward, whether there will be multiple short-term trades or long-term big cryptocurrency trades. Furthermore, the increase in trader base for cryptocurrencies and the increased knowledge about frauds and the various methods they use to extract tokens from newcomers in the trade is well known among the trader base. Considering these factors, hackers and scammers have also come up with another dangerous form of fraud, which is fake Initial Coin Offerings (ICQ).
Even though these reports have declined in recent days, trading small-scale or newer cryptocurrencies is a constant gamble. One can never know the legitimate tokens unless they go for much more popular and expensive trade tokens like Bitcoins, ethereum, litecoins, and more. According to a recent report by The Federal Trade Commission, fraudsters have caused losses amounting to a whopping $80 million until now, with most of the traders being between 20-40 years of age.