India Becoming Familiar With The Cryptocurrency Scam

Written by Sajwar Sohail
Published on June 9, 2018

For long now, cryptocurrencies and cryptocurrency related transactions are frowned upon due to security reasons. People have started to develop trust and are now more involved in blockchain technology, but some loopholes make it prone to vulnerabilities. According to a report published by Quartz, the number of crimes in this domain is significantly increased at a rampant pace. Online criminals and hackers are well aware of the financial innovation and adapt their methods when it comes to cryptocurrency scam.

Some of the common methods include multi-level marketing (MLM) schemes, hacks, phishing, and more. In this technologically advanced world, kidnappers are also asking for ransom money in the form of cryptocurrencies.

Last week, a staggering $75 million cryptocurrency scam was reported by the Indian Police. In a new scam, a fake Initial Coin Offering (ICO) sold fake cryptocurrency to the investors. The company was operating under the name of Money Trade Coin or MTC.

This is not it! As per the incident quoted by Quartz, a cryptocurrency investor lost nearly $10,000 worth of Bitcoins due to hacking. In an attempt to retain the lost digital currency, the person contacted someone who could help get her funds back. However, the group of individuals ended up stealing more Bitcoins from her that cost her $50,000 or so.

According to an unknown source from the head of the cryptocurrency, “Wherever there is money, there will be scams, and there is nothing surprising about that… But that doesn’t mean that you can blame the whole system because investors are being stupid and jumping into these random money-making schemes or clicking on strange links to make a quick buck.”

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