Beware of Cryptocurrency frauds! Bitcoin, Ethereum scams hit Delhi, Maha, know how to avoid

Cryptocurrency frauds have increased and people have lost money in Bitcoin, Ethereum scams in Delhi, Maharashtra etc. Know tips and tricks to avoid cryptocurrency scams.

| Updated on: Aug 21 2022, 23:00 IST
Beware of Cryptocurrency frauds! You can lose money in Bitcoin, Ethereum scams, know tips and tricks to avoid them. (REUTERS)
Beware of Cryptocurrency frauds! You can lose money in Bitcoin, Ethereum scams, know tips and tricks to avoid them. (REUTERS)

Cryptocurrency investment has gained pace across the world and this has fuelled scams and frauds related to it. Several people who wanted to invest in cryptocurrencies like Bitcoin, Ethereum and others have been duped by scamsters, including in Maharashtra and Delhi. According to a data from the National Cybercrime Reporting Portal, Delhi reported the second-highest complaints regarding cryptocurrency scams after Maharashtra from January to June 2021. In many cases of Bitcoin, Ethereum fraud, cybercriminals create websites where people end up buying crypto and before long, it is gone the thieves have disappeared with crores of rupees of investors' money. These cryptocurrency fraudsters create fake virtual currencies, apps, websites to cheat people.

With so much attention on this alternate form of wealth, you should first know what is cryptocurrency? It is a digital currency secured by cryptography and can be used as a form of payment. It can be bought and sold. In fact, it is digital money that has not created by any government or country. Bitcoin is one of the most popular forms of cryptocurrencies and can be used as an investment option or as a method of payment.

How to avoid cryptocurrency frauds:

Even though cryptocurrency is said to be safe, one should always be alert because wherever there is money to be made, fraudsters are not far off. If you own cryptocurrency or are planning to invest in it, never fall for any amazingly great offers that you see in your email inbox or on any website or app. Remember, if the offer is too good to be true, it is probably fake.

You should verify such claims before investing. In order to make you stay alert and understand the tricks used by scammers, here are some of the tips using which you can avoid cryptocurrency scams and frauds.

How to identify cryptocurrency scams

20 Minutes
  • Smartphone
  • Laptop
  • Desktop
  • Updated Browser
  • Internet
Step 1: Promises of a high or guaranteed return: You are advised to not to get into the advertisements and offers offering you a high or guaranteed returns. You should crosscheck the authenticity of the same before investing in it.
Step 2: Unnamed or non-existent team members: If you are being approached by someone offering you certain crypto deals, you need to check if that organisation or team is genuine or not. You can easily Google the name and find out if the one approaching you is fake or not.
Step 3: Promotional offers: Sometimes several marketing tricks and promotional offers are being used to cheat customers. You should always be alert to such tricks.
Step 4: Check the white paper: This is a document which contains info about how a company plans to grow and make money. Every genuine crypto firm should have a white paper.
Step 5: Do research: Before investing in some crypto firm, do your research thoroughly, not just online, but if possible, offline too. Verify the websites or apps involved by checking out their reviews online, the grammatical and other errors in their language and ''contact us'' list etc. After all, it is your money and losing it is not an option.

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First Published Date: 03 Jan, 12:57 IST