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Common Cryptocurrency Scams

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As of July 2019, bitcoins were worth nearly $12,000. The value of the virtual currency attracts many to try their hand at mining, trading or investing. However, as with other monetary-based industries, the market is not without scams. In 2018, millions of investors reportedly lost billions of dollars after succumbing to cryptocurrency scams. The con artists implement a variety of tactics in order to make a profit.

Cryptocurrency Malware

Many online users are familiar with malware and the problems that the software causes. Malware has also being used in the cryptocurrency circles. In relation to the cryptocurrency world, the programs gain access to online wallets by monitoring addresses and insert the address of a scammer. Once inside a wallet, the criminals drain the account. Some scammers go as far as infecting computers and using them to mine cryptocurrency unbeknownst to the individual.

Fraudulent Exchanges

There are exchanges that misrepresent themselves as being reputable. The main goal involves separating clients from their money. Some advertise unbelievable promotions to attract unwitting consumers to the site. Others seduce visitors to create accounts and deposit money in exchange for bonuses. However, once the criminals have the money, they charge exorbitant fees for withdrawals.

Mining Scams

Many have found that cloud mining saves the expense of having to buy and operate mining hardware.

There are some reputable cloud mining services available that rent server space. But, there are many scam services. They may promise ridiculous returns. However, they fail to explain the hidden fees needed to mine. Some are simply Ponzi schemes that collect a client’s money and encourage them to invite others to join. The scam proprietors are the only ones who profit.

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