Cryptocurrency trading risks
What are the risks of investing in cryptocurrency? The virtual-currency market reached approximately $2 trillion in capitalisation in just twelve years — and the scams have grown alongside it.
Market capitalisation in 12 years
Lost by 7,000 Americans (Oct 2020 – Apr 2021)
Increase in crypto fraud losses YoY
Major Scam Categories
Fake Exchanges
Criminals create counterfeit trading platforms mimicking legitimate exchanges to deceive investors into depositing funds that are immediately stolen.
Social Media Exploitation
In July 2020, hackers hijacked verified accounts of celebrities and major brands, posting false offers to double bitcoin sent to specific addresses.
Extortion & Ransom
Bitcoin extortion scams increased 1,300% during one month of the pandemic. Kidnappers in at least 12 countries have demanded bitcoin ransoms since 2015.
Bitcoin Scams Are Inventive
As the cryptocurrency market has grown, so has the sophistication of scams targeting investors. Understanding these risks is the first step toward protecting your investments.