Cryptocurrencies have always been susceptible to fraud and scam leading to public distrust.
In fact, their decentralized nature makes them the perfect target for digital thieves.
Unfortunately, that’s because digital currencies are tricky to store and even trickier to protect.
Summer 2018: Cryptocurrency Scams
It seems like cryptocurrency scams increase exponentially during the summer. That was certainly the case this year, as global investors reported thousands of cases of cryptocurrency theft during the warmer months of 2018.
UK Fraud Cases led to $2.54 million Loss leading to Public Distrust
According to the UK, there were 203 confirmed cases of cryptocurrency fraud across the country just this summer.
It was so bad, investors lost up to $2.54 million.
Scammers targeted victims on social media platforms with the lure of rewards. Victims open a trading account on fake websites, and reveal personal information including their credit card details.
Action Frauds Report
The UK Action Fraud team is warning the public of fraudsters pushing “get rich quick” schemes.
Statistics show that in June 2018 and July of 2018, victims across the UK reported losing approximately 10,095 GBP per person.
Individuals reported 203 separate cases of cryptocurrency scams to Action Fraud during the same period of time. It’s no wonder public distrust of cryptocurrency has increased.
Backlash from the Action Fraud Report
Public distrust of cryptocurrencies has reached historical highs because of recent issues.
Several UK citizens have taken to social media to express their disgust and disappointment in cryptocurrencies in general. Furthermore, a few of these individuals used this report to validate their hatred and distrust of all digital currencies.
To protect investments, the Action Fraud team has noted, “It’s vital for anyone who invests or is thinking of investing in cryptocurrencies to thoroughly research the company they are choosing to invest with. The statistics show that opportunistic fraudsters are taking advantage of this market, offering investments in cryptocurrencies and using every trick in the book to defraud unsuspecting victims.”
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