Bitcoin continued its gains to approach the $100,000 barrier. With the price increase witnessed by the largest cryptocurrency in terms of value, warnings of cryptocurrency-related fraud are increasing.
The Identity Theft Resource Center confirmed that the record price increase creates a sense of urgency to invest in digital currencies, which scammers exploit to deceive investors.
Cryptocurrency-related fraud losses amounted to more than $5.6 billion last year, according to reports from the FBI's Internet Crime Complaint Center.
Scammers claim to offer exceptional returns, exploiting famous names such as Elon Musk to increase their credibility, according to a report published by the "CNBC" website and reviewed by "Al Arabiya Business".
They also share fake ads on social media sites that include links to fake sites that appear similar to legitimate platforms.
Tips to avoid scams
1. Check suspicious offers: If an offer seems too good to be true, it’s probably a scam.
2. Go to sites directly: Use official links instead of clicking on suspicious ones.
3. Be wary of paying only in cryptocurrencies: This is often a sign of a scam.
4. Check the legitimacy of companies and digital tokens: Search for the company in official databases, and make sure the coins are listed on sites like CoinGecko or CoinMarketCap.
Industry experts point out that advances in artificial intelligence technology are making scams more realistic even for professional investors, making it more difficult to distinguish between legitimate and fake offers.
As Bitcoin continues to attract investors around the world, caution and ensuring the credibility of any investment remains the only way to avoid losing money to increasingly sophisticated scams.
