Partner Mark Kenkre examines the common types of cryptocurrency scams and methods to avoid them, in the Express.
Mark’s article was published in the Express, 13 March 2022, and can be found here.
Mark’s article was also published in FNTalk, SVSINDS and Germanic News.
Last year, it was revealed that Britons lost more than £150 million to cryptocurrency fraudsters with reports of digital crimes jumping by more than 30 per cent compared to 2020. According to Action Fraud, 18-25-year-olds were the hardest hit – perhaps not surprising since nearly a third of the UK’s 2.5 million cryptocurrency owners are aged under thirty.
With such a boom in investor interest, the high-tech nature of crypto is also attracting sophisticated scammers.
So, what are the key warning signs that investors should look out for?
Here are some of the most common types of scams:
There are many new, evolving risks in the crypto world. To minimise them, stick with beginner friendly crypto exchanges like Coinbase or Gemini. For beginner crypto investors, it may be best to start with the two most popular cryptos – Bitcoin and Ethereum – which have a longer track record than other altcoins.
The best way for victims of a scam to try to recover funds that are lost is by reporting any suspected fraud to the Police and to your bank – the best starting point to see if recovery of your lost funds is possible.
Beyond applying common sense and never parting with your money in a hurry to anyone offering quick or high returns, always protect your private financial information including details about your crypto wallet. Never believe any guarantee that you will make money, achieve big payouts or get free money. Be sceptical, be sensible, and be wise!
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