With Americans Losing $80 Million Due to Cryptocurrency Fraud, What’s the Best Solution?

Not only has the price of cryptocurrency skyrocketed recently, but so has the number of cryptocurrency frauds. According to the Federal Trade Commission (FTC), Americans have lost more than $80 million in cryptocurrency fraud in the past six months. More than 7,000 people have been scammed; what’s more this figure is around 12 times more than the same period last year. Within this group, people aged 20 to 30 suffered the most severe losses in the cryptocurrency market, and this age group suffered more from investment fraud than any other type of fraud.

Why do people lose so much money?

Many cryptocurrency token buyers do not fully understand cryptocurrencies, and some scammers purposely confuse potential investors with technical terms in cryptocurrencies. When there is a significant gap in understanding cryptocurrencies, criminals are more likely to take advantage of unsuspecting investors to commit crimes. In addition, with the current blockchain technology in a stage of rapid development, there is a lot about the blockchain in general and crypto in particular, for people to understand and learn.

Increase in price

Since the beginning of this year, the price of cryptocurrency has risen rapidly. Countless news stories about people achieving overnight wealth through cryptocurrency has continued, which has paved the way a certain investor mindset: one is the fear of missing out on opportunities (FOMO), and the other is inflated expectations of investing in digital currencies to obtain huge profits. Naturally, the massive return of a typical investment will attract people’s attention, and news like this is expected in the cryptocurrency field. This is because so many digital currencies have achieved huge returns in just one year, which has attracted countless investors. But it should be noted that significant risks often accompany high returns, so BigONE recommends that investors be cautious when buying cryptocurrencies.

How to avoid cryptocurrency scams

Take a good amount of time to understand any cryptocurrency you want to buy, look at the introduction to the management team, what problems the token promises to solve, whether it has offices and where they are located, and the token’s current competitive environment. In other words, please research and learn first. In a similar fashion, you should first investigate any cryptocurrency exchanges you plan to use before signing up.

Use reputable platforms and exchanges.

There are hundreds of cryptocurrency exchanges around the world. When choosing an exchange, a good starting point is to refer to the exchange ranking website. A more reliable method is to select an established cryptocurrency exchanges like BigONE (because the exchange rankings of many websites can be manipulated by spending money). It’s also worth finding out whether they will lend your tokens and pay you rewards when choosing an exchange.

Double-check the URL

Another common scam is to imitate a popular cryptocurrency website or application and then transfer your coins or cash to a fake webpage through fraudulent means. The way to avoid this kind of fraud is simple, add bookmarks to the websites you use frequently, and pay special attention to URLs. For example, pay attention to the letters that have been converted into numbers, “1” represents “I” or “0” represents “O”, as these small details may be the telltale signs of a scam website.

Be cautious about celebrity endorsements

Celebrity endorsements are worthy of our suspicion because we don’t know whether or how much the celebrities endorsed are paid for promoting the token. In addition, imitators of these celebrities will also try to make money by promoting cryptocurrencies. For example, the FTC reported that in the past six months or so, people paid more than $2 million in endorsement fees to fraudsters posing as Tesla CEO Elon Musk.

Don’t give your password or encryption key to anyone

Just as you wouldn’t give your bank transaction password or email password to strangers, you should immediately suspect anyone who asks you to provide a password or key. The encryption key is like a bank transaction password, and only you have the right to access it.

If you invest in the stock market, there will be a certain degree of security because stockbrokers must abide by strict laws and regulations. However, it is often difficult to distinguish between real and fake companies in the cryptocurrency market. If a business can pass the official security verification of a reputable cryptocurrency exchange, that will help investors differentiate between true and false.

Recently, the BigONE exchange has opened a new [https://bigone.com/en/anti-fake] function to prevent criminals from using the name of BigONE for fraud. If the content you enter is an unofficial account, BigONE will remind you of the following: “The content you are querying this time is not an official BigONE channel.” Therefore, please pay attention to the safety of your assets and protect yourself. In this way, you can be protected from fraud, and ensure the safety of your assets.

About BigONE

BigONE is a global cryptocurrency exchange that provides a platform for trading various cryptocurrencies. It was founded in 2017 and registered in the Netherlands. The group operates in Russia, Brazil, Vietnam, Seychelles, Singapore, Japan, and Indonesia, providing marketing, investment, and blockchain technology research & development.