As more people get interested in cryptocurrency, scammers are finding more ways to use it. For example, scammers might offer investment and business “opportunities,” promising to double your investment or give you financial freedom.
It may seem as though it’s the wild west for investors, but it doesn’t have to be. While there are certainly risks in the market, the opportunities may be irresistible for some. However, being cautious is always a must, and there are clear signs of scams that investors can look for. By avoiding these traps, users can better their chances for success and protect their investments. These are some of the most common scams and how they can recovered.
Hardware Wallet Theft
For users who are concerned with security and privacy, a hardware wallet – a physical device that stores their private keys – is an increasingly popular option. Usually, as small as key-chain USB drives, these wallets offer an offline way to help crypto investors protect their bitcoin even further. However, there have been reports that some of them have built in vulnerabilities that open them to hackers that could easily steal all a user’s holdings.
Despite their decentralized nature, most cryptocurrencies are still bought and sold at exchanges. While this makes it easier to find the coins investors desire, there is still no regulatory body overseeing these exchanges in many countries. Thus, many investors have been left penniless when the exchanges they signed up for turn out to be traps. Remember Quadriga?
One popular method involves creating fake websites that resemble ICOs’ and instructing users to deposit coins into a compromised wallet. Other times, it’s the ICOs themselves at fault.
It is not always easy to avoid these hurdles most especially as a newbie in the cryptocurrency, ranging from fake exchanges to bad trading brokers. Recovering of funds should be done as fast as possible with follow up. In 2019 when Quadriga happened, a notable professional recovery firm, Funds Recovery Dome was able to scoop and transfer funds for most of the victimized clients. it has since then be known for it’s recovery of funds from online trading or cryptocurrency scams ranging from forex trading scam, binary option scam, and some other specifics. Reporting by sending a mail about the loss to Funds Recovery Dome is the best known way to recover funds within a short period and without any upfronts until after recovery.