Cryptocurrency scam

During a cryptocurrency bull run, when prices are rising rapidly, there is increased media attention and investor interest, there is indeed a higher likelihood of cryptocurrency scams. Scammers often exploit the hype and euphoria surrounding bull markets to lure unsuspecting investors into fraudulent schemes.

In 2023, it is estimated around $2 billion was lost by investors to scams, rug pulls and hacks. Although the technology is becoming more secure and stable and many users are more aware of the tricks used to steal assets, there are still ways for thieves to extract your crypto if you aren’t careful.

1. Fake ICOs and Token Sales: Scammers may create fake initial coin offerings (ICOs) or token sales, promising high returns on investment. They may use misleading marketing tactics and false promises to attract investors and then disappear with the funds once the ICO is over.

2. Phishing Scams: Scammers may send phishing emails or create fake websites posing as legitimate cryptocurrency exchanges or wallets, tricking users into providing their login credentials or private keys. Once

the scammers have access to the user's account, they can steal their cryptocurrencies.

3. Pump and Dump Schemes: In pump and dump schemes, organizers artificially inflate the price of a low-volume cryptocurrency by spreading false information or using coordinated buying activity.

4. Impersonation Scams: Scammers may impersonate well-known figures in the cryptocurrency industry, such as developers, influencers, or exchange CEOs, on social media platforms.

5. Pyramid and Ponzi Schemes: Scammers may create pyramid or Ponzi schemes, promising high returns on investment through referrals or by pooling funds.

Experts suggest the best ways to keep your crypto safe in 2024 are :

# Do not store your password and seed phrase on the Cloud

# Use a hardware wallet instead of an exchange

# DYOR – Do your own research

“Hacks, scams and rug pulls not only pose a threat to individual investors but cast a shadow on the broader narrative of cryptocurrency as a revolutionary force in finance. They erode trust, stifle innovation, and impede the progress towards a more inclusive and decentralized

financial future. Therefore, the task at hand goes beyond personal security; it is a shared responsibility to fortify the foundations upon which the future of finance stands.

Dr. Deepak Kumar Sahu Editor-in-chief- VARINDIA