Common cryptocurrency scams and how to avoid them
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Metro Manila (CNN Philippines) — Is cryptocurrency a scam? It isn't, but you should still be careful with fraudulent schemes that ride on its popularity. Cryptocurrency is a volatile enough investment as it is. Don't fall prey to these common cryptocurrency frauds.
Scam No. 1: Fake cryptocurrencies
A common scam is presenting a new cryptocurrency as an alternative to popular digital monetary currencies like Bitcoin. Fraudsters would lure victims into believing it's too late to cash in on Bitcoin, and they will introduce a fake cryptocurrency.
In the United States, the people behind My Big Coin were charged for running an elaborate cryptocurrency scam that defrauded at least 28 investors out of six million dollars. Authorities learned the victims were asked to invest in fake cryptocurrency, not knowing the funds were re-directed into the fraudsters' bank accounts.