Cryptocurrency has been a media buzzword for the past few years. Crypto trading and investing have seen a dramatic rise in Asia, where it is now being treated as a highly sought after opportunity.
Countries like Japan have recently recognized crypto trading as legal tender, while others like Malaysia are looking to implement favourable regulations soon.
The Mena region is no exception as countries here too take note of its benefits and the risks involved with the technology.
The volatility associated with cryptocurrencies makes it extremely risky here, given that our economies can be volatile themselves from time to time owing to political changes, natural disasters or even terrorist activities.
With that said, only those beginners who do their research thoroughly should partake in this market.
Crypto Scams to Avoid in Mena.
Such scams are usually carried out through multi-level marketing.
The promoter promises a high-profit rate to their victims and then asks for an initial deposit or a referral fee from those they have introduced to the company.
In return, the promoter uses the victim’s money to pay off earlier investors until everything comes crashing down.
It has been observed that riskier ICOs tend to commit this kind of scam whereby a substantial amount of investment would yield a significant profit within a short period only to attract more unsuspecting victims before going silent at some point.
This particular scam is viral these days, where the victim is promised to earn a share of profit from mining Bitcoin without any expenses.
These promoters use attractive terms such as “No Work Commitment”, “No Risk Involved”, and even “Invest as Little as you want”. However, these are all lies only meant to deceive the victim’s money away from them.
Crypto wallet scams are usually carried out using fake wallets, which may be used to send or receive cryptocurrencies.
These wallets often go viral on social media platforms because they promise free crypto coins should one refer to other users.
In return for this referral reward, the user would have to install the app through which they would easily trick them into giving away their personal information.
These are usually carried out using fake Bitcoin exchanges that offer higher Bitcoin or Ethereum transactions.
By doing so, the fraudsters would ask victims to deposit funds, not knowing that they are all being used to line the scammer’s pockets instead.
To stay safe from this kind of fraud, users must always do their due diligence before choosing a Bitcoin exchange.
Crypto investment scams are often found everywhere on social media platforms where promoters ask investors to invest their money into ICOs with promises of high returns within a short time, only to flee away with everyone’s money at some point later on.
To avoid falling into this trap, investors must always do their research beforehand to check whether or not a particular business is legit before making any commitments.
Gamblers who prefer cryptocurrency transactions are highly vulnerable to such scams since they can be done anonymously without revealing one’s identity.
In addition, there have been recorded cases of these gambling sites claiming that the user has lost his funds in accidents and thus ask for payment from them only never to send it back afterwards.
Several fake ICO websites have conducted fraudulent activities by pretending to launch an authentic ICO project.
These scammers usually design their website using the same template as a simple project with similar logos and design elements.
They may also claim to have a highly experienced team working on the ICO project, only for it to be non-existent later on.
Scammers tend to use fake wallet apps to steal cryptocurrency from unsuspecting users by instructing them to deposit funds in their wallets for safekeeping purposes.
By doing so, even if the victim realizes that they have been hacked at some point, there is nothing much that they can do but take note of the loss.
Thus, users must take the time to learn how wallets work before deciding to use any of them.
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