One of the inevitable situations that a person may encounter is being fooled by people who are a con or those who specialize in fooling people on another level, making them a fraud.
These people tend to bait people using make-believe sites or pages that seem reliable. However, in this article, we will be focusing on how these frauds have entered the world of cryptocurrency and their five different tactics for deceiving other people.
To know more about why frauds and scams are still common today despite the growing population of educated individuals and how to spot different types of fraud, read more below.
Why Are Frauds or Scams Common?
Scammers and frauds only have one job: to take advantage of people using sites, and this time, cryptocurrency.
However, the million-dollar question is, why do scammers and frauds still thrive today even though the population of educated people is growing? How can they still get to scam when people are already knowledgeable about their tactics and techniques?
Well, to put it simply, while it is true that people already know about the techniques of these scammers, these frauds would also not let the exposé stop them from fooling someone. They will always make a way, regardless, just to continue with their con acts.
As the world evolves, the tactics of these frauds evolve as well, conning people who are gullible enough or targeting those they think will be baited.
The cycle won't end unless a person will seek help from an anti-scam expert like Global Fraud Protection. You are guaranteed that you get to be aware of the latest fraud exposed by this fraud protection agency and the previous broker scams they have exposed.
You may also read more about different scam brokers so that you can avoid engaging with them and finally claim a chargeback process. In the world of evolving fraudulent scammers, you can take a step ahead of them and outsmart them.
Five Types of Online Scams
Most people say that knowledge is power. We strongly believe that in order for you to outsmart scammers because scams can happen to anyone, anywhere, and anytime.
Get ahead of the scammer and know about the five different types of scams that internet-based trading platforms currently suffers from so you don't get entangled with them any longer:
1. The Ponzi Scheme
Also known as the Interest-paying Scheme, this type of scam is relatively prominent in crypto markets. When scammers decide to use Ponzi as a scheme, they will create a legitimate site so they can gain the trust of investors.
From here, they would develop a profitable interest system and market their products altogether. Unfortunately, after several years, they would eventually run away with all the money they had collected from the investors and cease the operation.
Examples:
- Bitclub
- Bitconnect
2. Crypto Wallet Scams
With the growing industry of advertisements, scammers will eventually use it to their advantage to deceive every online user on a daily basis.
Because wallet scams are commonly found in ads, the tendency is that people have a hard time distinguishing which ad is legitimate or ad. This dilemma would continue unless there were someone to break the cycle.
Now, to ensure that you are downloading legit wallet scams and to protect your assets from being exhausted in one click, make sure not to click a link right away. Intensively research it first, and don't get swayed by persuasive marketing.
3. Dapps Scams
This type of scam is somewhat relative to the abovementioned scam. But this time, you have a legit crypto wallet. You do not get too confident about your wallet because you are still prone to scams.
Now, how does this work? Of course, the scammers involved have all the knowledge in coding and probably are the best. They use links to get into your assets, and their hidden codes posing as a trojan in the link will exhaust your acquisitions as fast as the speed of light.
4. Phishing Scams and How They Work
Out of all the scams mentioned here, Phishing might be the most common yet still very deceiving because the use of this kind of scam involves replicating the investor's website of interest.
The scammers are smart because they pique what is interesting for the target people, and even the most knowledgeable investor in the crypto market may fall into this scam.
Phishing scams are convincing because they offer the slightest difference in the site's URL, like adding an underscore (_) that is almost invisible to the eye of someone who does not pay much attention to detail.
5. Giveaway Scams Still Exist
Scams are too deceptive to lure you into getting entangled with them when we hear about scams.
The pattern in this scam is pretty simple. The frauds would offer realistic giveaways such as:
- Buy 1 ETH, Get 2 ETH in return.
- Buy now. Only 100 ETHs left!
These scams may sound profitable, but an investor should be wiser in deciding whether it is worth trying or not by weighing, is letting go of additional 2 ETHs greater than risking all of my assets? The answer only relies upon you.
Summary
To sum it all up, when you invest in crypto trading, knowing is barely enough because what you will need is wisdom to apply all of the knowledge that you have gained to counter every crypto trading sham on internet-based platforms.
And to ensure that you are trading safely, you may want to seek help from Global Fraud Protection. This site will not only help you but will also make you confident in trading without worries.
They offer a chargeback process, data of scam brokers that they have dealt with, investment scam information, and how you can guarantee that you are dealing with a broker who can be trustworthy.