What are the cryptocurrency abuses you should be aware of?

Cryptocurrency fraud has shaken the financial industry since the day Bitcoin gained popularity, and unfortunately more than a billion dollars are thought to have been lost in such fraud. At the same time, millions are lost each year to such scams. We expect you not to fall victim to such scams, so we offer you this article that will help you in one way or another to find out about many existing crypto frauds.

These are the types of cryptocurrency fraud –

Distribution fraud

It is incredibly unlikely that someone will have a legal distribution that will require you to send your own money first. On social media, you need to be careful with these types of text messages. They may have come from accounts that may look identical to the types you know and really like, but that will be part of the trick. As for the many answers that thank the mentioned accounts for their special generosity – they are just fake company accounts or bots involved in the fraud with distribution.

Fake mobile applications

Once the client installs a malicious application, everything may seem to be working as intended. On the other hand, these programs are designed specifically to steal your cryptocurrencies. There have been many instances in the crypto room where customers have downloaded malicious applications that the developers have rigged as a large crypto company.

In such a scenario, when the consumer receives a financing transaction usually on the wallet or to receive payments, they actually send cash to an address owned by the fraudster. Regarding the exchange rate, when the money is transferred, there are no cancellation buttons.

Pyramid and Ponzi schemes

In Ponzi’s scheme you can see an investment opportunity with certain profits, which is the first red flag. In general, you will see this particular scheme disguised as a portfolio management service. In fact, there is no magic formula in the office, the “return” gained is simply the money of other investors.

In a new pyramid scheme there is a little more work that is required of the participants. At the top, the pyramid will usually be the coordinator. They will hire a certain number of men and women to work at a certain level below these people, and each of the men and women will get their own number of people, and so on. As a result, you get a significant structure that grows exponentially and leads to the creation of new levels that are disguised as a pyramid.