Crypto Trading Is a Risky Business, but There Is Reason to Be Hopeful

Since the crypto market is completely decentralized, the technology has been at risk of cyber-attacks and many other types of fraudulent Bitcoin scams.

According to the FTC (Federal Trade Commission), crypto investors have lost over $80 million since October 2020 due to such scams, and the numbers are increasing.

A 77-year-old woman fell victim to such a scheme and lost more than $12,000 – she was fooled into the plot via an email alert, warning her of malicious activity on her PayPal account. The victim was instructed to purchase $3500 of Bitcoin, told to share her banking details, and was robbed of her money this way.

These types of scams have significantly escalated during the Covid-19 pandemic, with many desperate to make money fast and placing their trust in these schemes. In a recent incident, a male victim was lured into a scam via the dating app, and the perpetrator convinced him to hand over £20,000 after showing him how lucrative crypto trading is. There are many types of dating scams, which increased by 40% during the lockdown period. Victims are being fooled into handing over enormous sums of money by emotionally extorting them.

How is the crypto market impacted？

The minor scams might not affect the crypto markets since there isn‘t much media attention; however, recent cyber-attacks on large corporations have caused a sell-off due to traders’ fears. The price of Bitcoin dropped below $32,000 in June 2021, after the news broke of a cyber attack on Colonial Pipeline.

When traders become fearful, they remove their funds from the market, and this can cause significant volatility in an already sensitive crypto market.

How to protect yourself and continue trading？

Although the crypto industry is vulnerable to these risks, it can be controlled by choosing a reliable exchange platform that ensures data and funds protection and is designed with advanced security features.

Cybercrime takes on many forms to extort money from innocent victims and ranges from malware, through hacking, to elaborate investment schemes. However, being well informed will help place your mind at ease, knowing your funds and information are well protected.

-----------------------------------------------------

WIKIFX continues to fight vigorously for the protection of customers and to ensure the wrong doers are held accountable. If you are a victim of online fraud / scamor have lost funds witha Forex broker through no fault of your own, please contact our Client Relations Team to arrange a discussion witha lawyer in the Forex Trading Litigation team.

You can download WikiFX at the link below:

Android: bit.ly/wikifxRUSapp

IOS: bit.ly/WikiFXrus