Cryptocurrency investors have been warned against the rapidly growing risk of scam related activities. Recently, the US Department of Justice announced the seizure of over $112 million worth of digital assets as a result of a cryptocurrency investment scam. The scammers, in this instance, utilized varied communication methods such as phone numbers, dating websites, text messages, and social networks to gain the trust of their victims before convincing them to invest in fake crypto platforms.

The US DOJ estimates that cybercrime fraud will cause $3.31 billion in losses by 2022. Cryptocurrency-related fraud is particularly prominent, with reported losses increasing by 183% from 2021 to last year to a total of $2.57 billion. Fraudsters build disguised webpages, download malicious smart contracts, and create apps designed to appear as genuine trading platforms.

In this way, it is easy to become a victim of a cryptocurrency-related scam. Specifically, victims transfer their funds to accounts and cryptocurrency addresses owned by the scammers and their partners. In order to avoid such scams, it is essential to remain aware of the growing risks. One should not rush into investing without adequate knowledge or research. Moreover, they should avoid entering into an agreement without verifying its authenticity. Contact a relevant organization to check the trustworthiness of the company and product before investing. Knowing any potential red flags and staying up to date with crypto news is another way to protect oneself from such scams.



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