FinancialCentre reports – Escalating Cryptocurrency Scams – A case from Tennessee

London, UK, 4th March 2022, ZEXPRWIRECryptocurrencies are digital or virtual currencies that use cryptography to secure transactions and to control the creation of new units of the currency. These are used primarily outside existing banking and governmental institutions and exchanged over the Internet. Since the 2000s, there have been cryptocurrencies such as Bitcoin (BTC), Ripple (XRP), Litecoin (LTC), Peercoin (PPC), Namecoin (NMC).

Cryptocurrencies are typically associated with the use of blockchain technology. Blockchains are cryptographically secured, time-stamped ledgers or “chains” that are distributed publicly. FinancialCentre Broker Daniel Wilinski said that blockchain technology is what provides many cryptocurrencies their value. Cryptocurrencies are decentralised, meaning that they do not belong to any form of government and are therefore not subject to any regulations. This makes them very popular among investors who wish to remain anonymous or whose transactions aren’t limited by minimum purchase amounts, geographical boundaries, or other restrictions. There are some cryptocurrency scams, however.

He says that the first red flag of a scam is the promise that one can get rich very quickly by investing in cryptocurrency. Please choose your investments carefully because it may be hard to undo what you have done. Cryptocurrencies are far from being the ‘get-rich-quick’ scheme people tend to believe, and they are highly volatile.

Crypto scams

Crypto Scams are schemes or Frauds that are intended to deceive cryptocurrency users. These scams are usually linked with some forms of social engineering techniques, phishing attacks, etc. Scammers are using these techniques to deceive cryptocurrency users into believing their claims, so they can trick them into sending money. Scams can take different forms, including ICO scams, wallet scams, scam exchanges, etc.

These scams are becoming more rampant every day because cryptocurrencies have gained increased popularity. The cryptocurrency schemes are not only the cases in which the users incur monetary losses, but there are also some other issues involved. These can include compromising their personal information or opening them up to law enforcement. Such incidents can cause problems, as they may deal with identity theft, which always puts the victims at risk.

Daniel suggests that to avoid these problems, people should always keep an eye out for any peculiarities in the sites they are using. Users also need to use only trusted services. They should never send money to their contacts without knowing about them personally. Also, they should not open suspicious website links as they may be targeted by phishing attacks. Users must also rely on their instincts and common sense instead of trusting ads that promise too good to be true returns.

A recent report

After falling for an online crypto dating scam, a Tennessee woman claimed she lost $390,000 in assets belonging to herself and her father. Nicole Hutchinson, 24, inherited her mother’s home after she died and sold it. The money was shared with her father. She thought she’d be able to assist her family and create a new life in California with the $280,000 she received.

Hutchinson began to use the internet dating service “Hinge” as a method to meet new people before moving to California. She said she had met a guy who introduced himself as “Hao,” and soon they became friends. She also said that when he told her he came from the same town in China as Hutchinson was adopted, she had a strong connection with him. Hao told her that he was into investing in cryptos and that she should give it a shot too. Hutchinson said that she was not sure because she knew nothing about the process and currencies at all, but Hao kept saying he knew enough to help her do well in the area.

According to Hutchinson, Hao instructed her to create an account on a legitimate site, He then sent her a link and told her to send money there, saying it was to a cryptocurrency exchange platform. She started off with a little sum, but she quickly began investing much larger sums of money. When her account began earning money, she encouraged her father to join in, and he did. By the end of the year, their combined account had grown to $1.2 million, and Hutchinson felt it was time to cash out. When she wanted to withdraw her money, the site informed her that she would have to pay a large “tax payment” of roughly $380,000.

She then realised that she was a victim of a scam and lost all the assets she had. Daniel thinks that the increasing reports like this one in the news should be a wake-up call for everyone to realise that scams are possible and can affect anyone. He thinks it is important to keep an eye out for these schemes, avoid them and report them when spotted. This way, everyone can be safe from scams.

Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.

Published On: March 4, 2022