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Thursday, October 10, 2019

Watch Out for These big scame

Unless you've been living under the rock for the past few weeks, you've heard a bit about a digital currency called Bitcoin. This price and other cryptocurrencies have skyrocketed, causing Tulip Mania style frenzy on Wall Street.

There has been a recent hype about Alt-coins, and there are reports that people are buying and buying second mortgages and home equity lines.

The volatility is so high that the Chicago Board Options Exchange (CBOE) stopped trading bitcoin twice on December 10 and once again on December 13, while Coinbase. Ethereum trading stopped.

For years, financial analysts have kept people away from cryptocurrencies by arguing that it is not too shaky with a secure investment.

However, the cost is so high that it is difficult for investors and entrepreneurs to see with larger new asset classes emerging.

But before people plummet, they need to understand the risks.

The cryptocurrency market is not only shaky, but also very obscure and fake.Since launching Bitcoin in 2009, these markets have been plagued by cyber attacks and fraud that have invested millions of dollars in investors.

To make matters worse, cryptocurrencies are not protected by the FDIC and cannot cover losses in theft.There are two main ways that cryptocurrency investors lose their shirts to scammers.

One is when hackers attack the infrastructure that supports these component markets (eg trades, digital wallets, mining companies, web hosting services, etc.).

Reuters estimates that since 2011, 980,000 bitcoins, worth $ 15 to $ 18 billion in current prices, have been stolen from cryptocurrency exchanges. A recent example is the NiceHash hack in December, when investor funds lost $ 64 million.

Also in November, the tether for $ 30 million was anchored. Someone misusing Parity's software freeze $ 160 million into an investor account. And don't forget the big mountains. The 2014 Gox Hack - $ 460 million lost.

Second, criminal investor targets directly. There are a variety of these online scams, often using "social engineering" tactics, but the main things to worry about are first coin offering (ICO) scams, phone gates, fake wallets, malware. .

Not many investors can protect themselves from attacks on cryptocurrency systems, but they can take steps to reduce the risk of falling into targeted attacks.Here is a breakdown of the following four attacks and how to mitigate the threat:

First Scam Offering (ICO) scam

ICO is when a new cryptocurrency is invented to offer investors. Needless to say, this is a regulated and dangerous activity, but it also suffers from scammers.

ICO fraud happens in two ways. The first is when criminals create fake ICOs and steal money from investors. This occurred in December when the SEC closed the PlexCoin ICO and claims to be a $ 15 million scam.

The second type of ICO scam is that hackers "parody" or disguise their legitimate ICO to make investors mind of paying for a real company.

This happened recently at ICO in Kik, the messaging giant.

Cybercriminals typically create fake websites or social media accounts and use email scams to promote fake "pre-sale" offers and other tricks. Chainalysis recently estimated that imitation ICOs will cost $ 225 million in costs to 30,000 investors this year alone.

CoinDesk confirms the validity of the claimed ICO. Don't fall for best selling tactics or truthful offers, especially if you receive them via email or social media messages, as there is a high likelihood of scams. See SEC advice on ICO investments.

Phone port

Theft of personal information on a mobile phone, also known as "phone port", means that criminals can steal someone's phone number by tricking a mobile provider and giving them control over the account. Once you have a phone number, you can reset your password to a digital wallet and empty your account.

These cryptocurrency transactions cannot be canceled, so investors can lose everything. According to Federal Trade Commission statistics, phone transplant attacks generally increased by 256% between 2013 and 2016.

Security Tips: Generally, mobile providers are encouraged to add a unique PIN and account verification questions to improve security.

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