When it comes to money, scams always happen. And the same applies to cryptocurrencies too.
In 2024 Cryptocurrency and Bitcoin hit all-time highs. This will most likely create an urgency to invest in cryptocurrencies to make money, while also leading to an increase in scammers trying to exploit this trend. The FBI’s Internet Crime Complaint Center has already seen a sharp increase in scams in 2023 Estimates put losses at more than $5.6 billion – about half of all reported fraud losses. Total losses in 2023 are up 45% compared to 2022, and as prices skyrocket in 2024, scammers are finding new ways to take advantage of people looking to make money.
Digital currency is currency that is stored in a digital wallet and the owner can convert the currency into cash by transferring it to a bank account. Cryptocurrencies like Bitcoin are different from digital currencies. It uses blockchain for verification rather than a central authority like a bank, making it harder to recover from a theft.
Even though cryptocurrencies are a newer trend, thieves are resorting to old methods to steal. Here are some of the most common cryptocurrency scams to keep an eye on.
1. Bitcoin investment plans
According to the FBI, investment schemes are the most commonly reported type of fraud. In Bitcoin investment programs, scammers contact investors and pose as experienced “investment managers.” Under the scheme, the so-called investment managers claim to have made millions investing in cryptocurrencies and promise their victims that they will make money from investments.
To get started, scammers ask for an upfront fee. Then, instead of making money, thieves simply steal the upfront fees. The…
