Hi fellow Steemians!
I bring a bad news, but one that certainly needs addressing.
Last year, Australians lost at least $2.1 million to cryptocurrency-based scams, including paying ransoms in virtual coins or being lured to invest in fake ICOs.
The figure is $800,000 more than first expected.
While this story is about Australia, everyone around the world trading and investing cryptocurrency should always be vigilant when doing it so you won't be a victim of the scams.
Keep in mind, the figures may be inflated due to the sudden surge in popularity of cryptocurrency late last year.
Nonetheless, this is why I say while people should be given the freedom to trade and invest crypto, there needs to be regulations that protect consumers from such scams.
For all of you out there, my suggestions to not get scammed are as follows:
- Always do your research before jumping on an ICO.
- If unsure, invest in well-known coins.
- Never keep your eggs in one basket.
- Don't save your password online. Keep it separately on another computer / paper / etc.
- If possible, try and use a separate computer for trading / investing. You may be targeted with ransomware and could not only lose your investment, but all your other files and data as well.
Do you have any other suggestions? Please share so everyone can stay safer out there.
Source: IT News
Image source: Ethereum World News
This is something I really see as a potential roadblock as mainstream adoption increases. I think all of us that have been in crypto for a while understand the volatility and risks. Honestly, I'm not even surprised by huge thefts and scams much anymore. New users who just joined Steem or just bought their first bit of ETH on Coinbase may not be ready for just how much of an absolute wild west crypto is. Experience and education are, in my opinion, one of the best defences against this. Even then, sometimes the exchanges or coins that scam aren't obvious (Mt.Gox was a surprise to many) and some that are to those who have seen it before(BitConnect...). I'm not even really sure what the most viable longterm solution is. It seems that anonymity brings out the worst in some of us.
Completely agree with you. Many people join the space thinking they might earn quick money but don't think about the negatives. I always say where there's money, there's someone who wants to take that money.