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Scams are a serious concern to cryptocurrency investors
The popularity of cryptocurrencies is growing, as is the amount of internet scams targeting would-be investors.
When you consider money, you may envision a crisp dollar bill or the stray change in your car. While many of us are concerned with what's in our wallets, others are betting their financial future on something less tangible.
Cryptocurrency is a computer-based digital currency that was created to function as a monetary system in which transactions between private parties are conducted online.
"With cryptocurrency, all of data is maintained on what's called a ledger, and there is a degree of cryptography that basically encodes both the sender and the receiver, as well as the actual transaction information," said Micheal Domke, director of Consumer Protection.
Bitcoin was the world's first cryptocurrency, having been created in 2009. There are now more than 7,000. With so many options available, their worth continues to rise.
"As of November 2021, there were over 18.8 million bitcoin in circulation, worth over 1.2 trillion dollars."
Robin Jacobs is the director of the Wisconsin Department of Financial Institutions' securities division. She asserts that expansion is one of the factors that contribute to the cryptocurrency market's volatility. Another issue to consider is the absence of cryptocurrency rules.
"The IRS taxes bitcoin as property, but the CFTC views cryptocurrency as a commodity," Jacobs explained.
Volatility increases the chance of significant financial losses.
"Since October 2020, fraud reports have risen dramatically, with about 7,000 people reporting losses totalling more than 80 million dollars due to these schemes."
Both Jacobs and Michael Domke, head of the Wisconsin Bureau of Consumer Protection, agree that there are several obvious warning flags investors may look for to avoid being duped.
"If you're being recruited via an unknown email that says, hey, we've got this new cryptocurrency and we're going to offer you this fantastic deal that's going to double your money or guarantee returns, those are absolutely the things you want to avoid." remarked Domke.
While the rise in popularity has resulted in an increase in fraud, Domke believes cryptocurrency's momentum will continue.
"We're seeing athletes, actors, and everyone else promoting this, which lends an air of respectability to the cause."
According to Domke, the safest approach to invest is to conduct extensive research on the cryptocurrency in which you're interested. Anyone who has been a victim of cryptocurrency scam should call the Federal Trade Commission or the Wisconsin Department of Financial Institutions.
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By Crypto PiratesThe popularity of cryptocurrencies is growing, as is the amount of internet scams targeting would-be investors.
When you consider money, you may envision a crisp dollar bill or the stray change in your car. While many of us are concerned with what's in our wallets, others are betting their financial future on something less tangible.
Cryptocurrency is a computer-based digital currency that was created to function as a monetary system in which transactions between private parties are conducted online.
"With cryptocurrency, all of data is maintained on what's called a ledger, and there is a degree of cryptography that basically encodes both the sender and the receiver, as well as the actual transaction information," said Micheal Domke, director of Consumer Protection.
Bitcoin was the world's first cryptocurrency, having been created in 2009. There are now more than 7,000. With so many options available, their worth continues to rise.
"As of November 2021, there were over 18.8 million bitcoin in circulation, worth over 1.2 trillion dollars."
Robin Jacobs is the director of the Wisconsin Department of Financial Institutions' securities division. She asserts that expansion is one of the factors that contribute to the cryptocurrency market's volatility. Another issue to consider is the absence of cryptocurrency rules.
"The IRS taxes bitcoin as property, but the CFTC views cryptocurrency as a commodity," Jacobs explained.
Volatility increases the chance of significant financial losses.
"Since October 2020, fraud reports have risen dramatically, with about 7,000 people reporting losses totalling more than 80 million dollars due to these schemes."
Both Jacobs and Michael Domke, head of the Wisconsin Bureau of Consumer Protection, agree that there are several obvious warning flags investors may look for to avoid being duped.
"If you're being recruited via an unknown email that says, hey, we've got this new cryptocurrency and we're going to offer you this fantastic deal that's going to double your money or guarantee returns, those are absolutely the things you want to avoid." remarked Domke.
While the rise in popularity has resulted in an increase in fraud, Domke believes cryptocurrency's momentum will continue.
"We're seeing athletes, actors, and everyone else promoting this, which lends an air of respectability to the cause."
According to Domke, the safest approach to invest is to conduct extensive research on the cryptocurrency in which you're interested. Anyone who has been a victim of cryptocurrency scam should call the Federal Trade Commission or the Wisconsin Department of Financial Institutions.
Support us!