Since the birth of cryptomontages, Blockchain technology has brought enormous benefits to society as a whole. Generating wealth and projects that have increased the welfare of people around the world. However, while part of the community is focused on creating positive projects, another is dedicated to defrauding and harming others. That’s why the Project Director of the NGO Bitcoin Argentina, Daiana Gomez, explains how to avoid crypto-currency scams during Decentralization.
Decentralize: Economists’ Debate on Bitcoin in Argentina
The crypto-currency scams in the world
Whenever mankind has succeeded in creating a new technology to improve the life of the whole society, unscrupulous groups of people have dedicated themselves to finding ways to use these new technologies to cause harm. And, unfortunately, crypto-money has been no exception to this problem.
Well, as Bitcoin Argentina Project Director Daiana Gómez said in her presentation, most of the members of the crypto community are exposed to all kinds of scams. They receive misleading proposals by different means on a daily basis. Users who have just entered the world of cryptoactives are always more susceptible.
Therefore, it is vital to guarantee our security, and that of our crypto currencies, that we know the main types of scams that exist in the crypto market. As well as the mechanisms with which we can confront cybercrime within our community.
The history of money: everything leads to Bitcoin
Phishing and fakes
The first type of scam we face within the crypto world is the one known as “phishing”. This practice consists of creating fake websites, mobile platforms, or any user interface that is identical to that of legitimate services such as crypto-currency wallets. The aim is for the users of these services to enter their data into the fake platform, so that the criminals can extract them.
This type of practice has become increasingly sophisticated. Even tags that used to guarantee security, such as the fact that the URL of a web page started with “htts” instead of “http”, have been overcome by fraudsters. Those who have created their own “secure site” labels for their fake interfaces.
Ponzi schemes are one of the best known, yet most perverse, types of scams that exist in the crypto world. The main characteristic of these pyramid schemes is that they turn victims into perpetrators.
If you have fallen into a pyramid scheme, the only way you can recover your investment is by getting new victims to provide more money to the scheme. Thus, the scam becomes a vicious circle that, because of the small amount of money lost by each person, usually doesn’t attract the attention of authorities.