Crypto Fraud FAQs

Cryptocurrency fraud is on the rise due to the volatile value of cryptocurrencies, attracting novice investors who are more susceptible to scams, especially when traditional savings offer low returns​​.

Individuals, rather than companies, often targeted specifically or at random, are the usual victims of cryptocurrency scams, particularly through bogus exchanges​​.

Crypto schemes that target novice investors, traditional push payment frauds, and exchanges set up to mislead or outright steal from investors are common types of cryptocurrency fraud​​.

While stronger regulation could help, there is a challenge in supervising the fast-moving and often unregulated cryptocurrency market​​.

It is advised to use major, recognized exchanges for transactions and to be wary of the inherent risks associated with the volatile nature of cryptocurrencies​​.

Investors should be cautious of promises of high returns, pressure to invest quickly, and any signs of an exchange not being transparent or well-established​​.

It's crucial to report the scam to authorities and seek legal advice, as there may be ways to trace the fraud through blockchain analysis despite the challenges​​.

Cryptocurrency transactions are recorded on a public ledger, which can sometimes be traced back to perpetrators, but recovery can be complex and uncertain​​.

Red flags include a lack of information about the owners, no clear regulatory compliance, and difficulties in withdrawing funds or lack of customer support​​.

Protection is limited due to the lack of regulation; however, choosing reputable and well-established exchanges can provide some level of security​​.