4 Min Read | May 20, 2021
A while ago, Julie Bushnell from the United Kingdom came across an online scheme where the people conducting it claimed to double her money if, in exchange, she would give them her cryptocurrency investment. The offer looked attractive to her.
According to BBC,
Julie Bushnell said she felt ashamed and embarrassed after falling for a Bitcoin fraud that cost her £9,000. It used the name of entrepreneur Elon Musk and a story on a fake BBC website suggesting she could double her money in a giveaway of the cryptocurrency.
Julie ended up investing all the money that she had been painstakingly saving up for a new house. Like thousands of other amateurs, Julie trusted the wrong source.
Soon, she realized it was all a scam. Her money disappeared and she was left weeping!
The cryptocurrency boom that started last year has taken the internet by storm. They have attracted investors around the world. But, with the rise in acceptance and usage of cryptocurrency, there has also been a subsequent rise in cryptocurrency scams.
There are already various risks associated with cryptocurrency investments. The presence of scams and frauds in this volatile space is, very simply, an unwelcome complication. Take a look at the following graph to understand how in the span of just 2 years, the crypto scammers have laundered a huge sum of money.
As we can see, the amount laundered in the first half of 2021 is far greater than the amount laundered in the past 2 years on the whole.
What does this imply for the growing popularity of the crypto space? If the scams are not controlled, will this popularity be sustainable?
In order to not to fall prey to incidents like mentioned in the anecdote above, you must acquaint yourself with the prevailing types of cryptocurrency scams and be safe.
Amidst all this, a report published by the Federal Trade Commission has shaken the investors' community!
Are you intrigued to know what happened?
The next section will help you understand the fuss!
The increasing popularity of Bitcoin and other cryptocurrencies have helped online scammers to fill in their pockets even more easily.
Since October 2020, reports have skyrocketed, with nearly 7,000 people reporting losses of more than $80 million on these scams.
What is even more shocking is the fact that as compared to 2019, the reported losses increased by a whopping figure of 1,000%.
With Bitcoin trending in recent times, many naive investors set out to try their luck. Impatient to make loads of money, they often get caught up in such scams. The scammers blend well and trick people into investing in black holes.
How do they do it, you ask?
Let us find out!
These websites post fake testimonials and interviews so as to appear legitimate and showcase that their investments actually grow. But, when innocent investors give in their money, the scammers fill their wallets and disappear.
But, in reality, they were a part of a scam plot where their fake partners (scammers) would chat about cryptocurrency and finally convince them to invest in it. As the data suggests, around 20% of the people have been the victim of ‘romance scams’ since October 2020.
Dear readers, you would be again astonished to know that Elon Musk impersonators have falsely taken a huge sum of $2 million from crypto-investors in the span of the last 6 months!
According to BBC,
“Giveaway gangs have already made more than $18m (£13m) in the first three months of this year, compared with the $16m made in total for the whole of 2020.”
In fact, people aged between 20-49 have mostly lost money to such fake giveaways. In this type of theft, the scammers pretend to be a celebrity online and offer unimaginable returns on crypto investments.
Part of the reason why so many people are falling victims is that certain celebrities have openly hyped crypto. Elon Musk, after all, is one of the loudest proponents.
In fact, in February, Musk even bought Bitcoin worth $1.5 billion and the following month he claimed to accept Bitcoin from people interested in buying Tesla cars.
All such comments and tweets from Elon Musk and others have acted as fuel to the Bitcoin price rise and have attracted many inexperienced investors into cryptocurrency. Not only this, since he is a big-time supporter of cryptocurrencies, the idea of Elon Musk giving free Bitcoins sounds somewhat credible to them.
The amateur and gullible investors who are looking to make a quick fortune are the perfect targets for such scams. They ended up believing in schemes like ‘Crypto Event: Bitcoin Ethereum Dogecoin’, ‘Tesla Bitcoin giveaway 2021’, ‘Elon musk giveaway 2021’ or ‘Elon Musk Giveaway on Reddit’.
After the high-profile giveaway scam that took place on Twitter in July 2020, this report by the Federal Trade Commission has come as a concern. The warning bells have started ringing for cryptocurrency enthusiasts.
If you are interested to be a part of the cryptocurrency world, no one will stop you. But yes, do remember to be cautious, informed and double-check before making any kind of transactions.
If you wish to know more about how to buy Bitcoin, click here. If it is Dogecoin that holds your interest, feel free to explore our blogs on the same here. So do not wait and visit our website right away!
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