As you attempt to strike it rich in the digital gold rush, make sure you know how to recognize various schemes that want to part you from your digital coins
The world seems to have gone ‘crypto-mad’. Digital currencies like bitcoin, Monero, Ethereum and Dogecoin are all over the internet. Their soaring value promises big wins for investors (before the coins’ prices plunge, that is). And the “fortunes” to be made by mining for virtual money have echoes of gold rushes in the 1800s. Or at least, that’s what many, including a long list of scammers, will have you believe.
In reality, if you’re interested in cryptocurrency today, you’re quite possibly at a major risk for fraud. This is the new Wild West – a lawless, unregulated world where bad actors often have the upper hand. But normal rules for fraud prevention apply here too. Everything you read online should be carefully scrutinized and fact-checked. Don’t believe the hype and you’ll stand a great chance of staying safe.
Why are cryptocurrency scams on the rise?
Fraudsters are past masters at using current events and buzzy trends to trick their victims. And they don’t come much more “zeitgeist-y” than cryptocurrency. Media stories and social media posts are partly to blame, creating a feedback loop that only adds to the hysteria over virtual currencies. The result? Between…