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What Is Cryptocurrency?
Cryptocurrency, or “crypto,” is a digital currency with value that changes based on supply and demand. It has advantages, such as ease of transfer between parties, and investing in crypto can result in significant returns. However, bad actors frequently use cryptocurrency to conceal criminal activity, allowing them to try and trick you out of your hard-earned money.
How Crypto Scams Work
Cybercriminals can pretend to be crypto experts. They claim they’ll make you rich if you invest money with them. But your investment will actually go straight into the scammers’ pockets. Another type of crypto scam is known as a “pump and dump.” Scammers convince many people to invest heavily in a specific currency to increase its value. But then, the scammers sell all their holdings for a huge profit, leaving you with worthless currency. Other crypto scams include phishing attacks that steal your wallet info, fake trading sites that look real, and deals that promise too-good-to-be-true profits.
Keep Your Money Safe
Many of these scams are convincing, and some even offer apps and websites to track your investments. Some even allow you to withdraw a small amount of money, which makes your investment seem safe and legitimate. But if you try to sell your shares, you will be told to send even more crypto to process so-called “fees.” The fees are just another way for cybercriminals to steal money from you, and you won’t gain any return on your investment. Awareness of crypto con artists' scams will help keep you and your money safe.
Remember these tips when dealing with cryptocurrency:
- Don't trust crypto deals on social media or in emails, especially from strangers. If someone requires you to buy or invest in crypto, it’s likely a scam.
- Sometimes, cybercriminals create fake videos or emails that supposedly show celebrities endorsing a particular cryptocurrency. Always research crypto platforms before using them.
- Be wary of promises of guaranteed high returns or "get rich quick" schemes. If they sound too good to be true, they probably are.