With the boom of the crypto industry within the space of the last ten years, individuals with hostile intentions continue to unveil and come up with new ways to exploit the industry fraudulently. This is nothing new as the traditional fiat faces similar shortcomings on its own right.

For the crypto industry, however, things are a bit different. The scenario of the crypto industry is relevantly new to most people as knowledge and enlightenment on the prospects of the industry continue to spread and gain traction. This spread is what draws new enthusiasts, traders, and even investors to the crypto industry.

With a large number of people now finding the crypto industry scene appealing for investment, so are the individuals looking to prey on them and their limited knowledge of the workings of the crypto industry. The new members of the crypto industry are easy prey for such individuals.

For the last two years, cryptocurrencies defrauding, especially on social media, has been prevalent and very much on the rise. In January 2019, reports indicated that crypto impersonations scams on Twitter alone had raked in millions in cryptocurrencies from people pretending to be well-known blockchain personalities.

But social media is not the only avenue that these individual utilize for their intentions. Below are more ways in which fraud and scam in the crypto industry are furthered.

Fake exchanges

As cryptocurrency gains fame, more people seek to acquire and take advantage of this. Fraudsters are now setting up counterfeit exchanges that claim to offer their users competitive market prices. This lures many into the trap. Always be sure to use a known and reputable exchange when conducting engagements in cryptocurrency.

Free giveaways

The internet makes information viral in an expedited manner. Nefarious individuals understand this and use the internet for advertising supposed free giveaways of most digital currencies. Before getting the free giveaway, they ask for the user to remit a small amount of payment for registration.it should be noted that this the first pointer of fraudulent activity and should be reported.

Malware

Much like the hacking for ransom, fraudulent individuals now use malware to steal from unsuspecting crypto traders. Whenever sending cryptocurrency, it is recommended to check the address even thrice. There currently exist malware that once installed in your system, changes the cryptocurrency addresses you copy-paste to a specific address different from the intended. This way, the remittance goes to the hacker.

Money transfer fraud

Emails and inbound communications asking you to help move some money is another method through which people are swindled of cryptocurrencies. The contacts offer a good portion of the funds in exchange for the services you will provide in helping transfer the money. Such emails should be marked as spam and immediately reported, as they are attempts by such fraudulent individuals to trick you into their web. Once you fall prey, it is possible that you get defrauded and even worse never get your portion of the funds back.

It is most probably true that if it seems too good to be true, it probably is, as no one gives away things or even money free anymore. Before engaging oneself in the crypto industry, one should always strive to do background research. This is important as the crypto industry; having been in existence for only ten years can be relatively unchartered waters for many. Doing this will help you know your way around the cryptocurrency community and industry. It will also shield you from the ignorance, on which most of the individuals furthering fraudulent activities rely on. Individuals interested in the crypto industry should as such take note and beware of the underworld that comes with the lucrative aspects of the industry.

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