With the age of digital currencies upon us, it is imperative to note the rise of scams associated with this trailblazing technology. Recently, a sentiment echoed by the (Vermont Department of Financial Regulation) DFR serves as a cautionary tale, as they issued a warning about escalating cryptocurrency scams operating through social media platforms.
This warning was occasioned by a recent incident where a 74-year-old investor lost his life’s savings of over $340,000 in a cryptocurrency fraud conducted via Instagram and Telegram. With social media becoming the hub for such scams, Instagram was named the top platform linked to crypto fraud by the Federal Trade Commission. The rampant rise of such scams prompts the need for potential investors to approach cryptocurrency with caution, execute thorough investigation, and take firm hold of the “Do Your Own Research (DYOR)” principle.
While the surge in cryptocurrency scams is tied to fraudsters who craft sophisticated, personalized ruses complete with forged bank documents and seemingly genuine conversation, one cannot overlook the roles played by crypto companies who either deliberately commit these infractions or ignore illicit activities that muddy the clarity of transaction trails.
Offenders in sites such as SpireBit craftily encourage victims to invest more by showing profits on every transaction, as seen in the case with the elder investor. Though he had prior awareness of cryptocurrency scams, his experience clarifies that anyone could be a victim, indicating that fraud education programs need to be ramped up.
On the bright side, state agencies and enforcement teams are not standing idle. Following the rise of state-sponsored hacker crises, the Justice Department’s National Cryptocurrency Enforcement Team (NCET) has their eyes set on crypto companies that engage in or turn a blind eye to these unlawful practices.
As the potential for blockchain continues along its promising path, integrating itself into areas like the electronic music industry and national cryptocurrency exchanges as in Indonesia, it is important to remember the dark underbelly of scams in this space. Reflecting on the narrative ahead, it is important to realize that a sustainable future in the cryptocurrency space will require a sturdy battle against deceptive practices, effective regulation, and fostering a culture of relentless self-education among new and existing digital currency enthusiasts. Indeed, the battle for a scam-free crypto world is well underway.
Source: Cointelegraph
