Scams, Ponzi schemes, and other fraudulent operations involving decentralised financial and blockchain technology are not uncommon. There have been numerous cases of conventional crypto scams being carried out successfully throughout the years. Furthermore, Ponzi schemes continue to profit handsomely from blockchain-related activity.
Cybercriminals were able to steal over $4 billion from cryptocurrency users and exchanges in 2019, according to CipherTrace research. A hack of Mt. Gox, the world’s top bitcoin exchange at the time, was used to perpetrate one of the first crypto frauds. Despite processing over 70% of all bitcoin transactions in 2013, the exchange platform halted trading, shut down its website, and filed for bankruptcy a year later due to cryptocurrency fraud. Over 800,000 bitcoins belonging to consumers went missing, according to the exchange platform.
Following these well-known cryptocurrency frauds, crypto scams on Instagram have become increasingly prevalent in recent years. “Crypto Instagram” is increasingly popular, and con artists frequently utilise these platforms to further their scams. According to a Coindesk study, over 1.3 million Instagram posts including the hashtag #Coinbase were used to promote crypto schemes unrelated to the Coinbase organisation.
According to several Facebook sources, a Coltlen Keithley is on the run for fraud and is suspected of stealing up to $800,000 from a number of young people across the country.
Despite the confidentiality that crypto tokens afford to their users and owners, you have to question how these heists were successful. This post will teach you how to spot and avoid crypto frauds on Instagram, and they will also work on other social media platforms. Let’s have a look at some practical advice:
Avoid Fake Crypto Accounts :
Fake cryptocurrency accounts have started popping up all over Instagram recently. The argument isn’t far-fetched, given how quickly the crypto sector is growing and how many people are interested in getting involved. This opens the door for phoney cryptocurrency accounts to prey on unsuspecting traders and investors. Traders and investors are typically attracted to these fraudulent accounts by attractive offers such as free cryptocurrencies, competitive rates, reduced exchange costs, and so on.
To avoid being scammed, you should look into the accounts’ identities, read some reviews in the comment section, and conduct other background checks to ensure that the accounts are genuine.
Avoid Crypto Payments on Instagram:
One of the most significant drawbacks of crypto purchases on Instagram is the lack of chargebacks. This means that any payments made cannot be reversed. As a result, you should be on the watch for the seller’s payment options. If the vendor only accepts cryptocurrencies as payment, try to find another method of payment or cancel the contract.
Scammers employ malware to commit crypto fraud on Instagram as well, and if necessary precautions are not followed, you might easily become a victim. This type of scam occurs when malware hijacks your clipboard data and directs your dollars or coins to the crooks if you click on it. As a result, you must be cautious about the links you browse on your devices.
Beware of Instagram Ponzi Schemes:
The Ponzi scheme is a type of pyramid scam in which members are paid based on how many new members they refer and recruit. This becomes a problem because the pyramid will collapse if no new members join. The simplest way to avoid this is to avoid groups that supply these services because they will quickly collapse.
Fake crypto investors frequently post prizes and promotions on Instagram. If you follow certain directions, they will provide you free cash awards, a large number of crypto assets, and so on. This may appear simple to spot, but it can be challenging for rookie crypto traders and investors. However, the majority of these promotions are bogus and will result in a loss of funds. It is preferable to stay away from them.
Pump and Dump Schemes:
These Instagram crypto scammers will occasionally purchase a new altcoin and convince you that it would provide multiple returns on your investment. The new coin’s price will rise as soon as the investment begins, but they will swiftly sell off and profit when this happens. As a result, new investors are dumped.
Before you trade or invest in a coin, you need understand its type. Check the seller’s handle for more realistic photographs and available images. This will protect your crypto money and keep you safe from scammers.
Payments with Credit or Debit Cards: This method of payment appears safe when conducting crypto transactions on IG because chargebacks do not apply to crypto and fiat currencies due to the blockchain’s irreversibility. As a result, you’ll be protected when conducting cryptocurrency transactions on Instagram.
Overall, criminals’ illegal actions are not immune to crypto trading and investment. You must be cautious enough to spot any fraudulent activity in your online transactions. Any IG handle that engages in questionable behaviour should be reported and flagged.