The New Zealand police have issued a warning to cryptocurrency investors to be careful of cryptocurrency scams and fraud in the choice of their investment. This was made known aftermath of a crypto fraud worth over $200,000.
Warning To Cryptocurrency Investors
The Canterbury police department recently issued a release containing a warning to cryptocurrency investors to be careful of the private information they share online.
Also, the release includes a warning to cryptocurrency investors to be careful of the type of investment they dabble into. The release was made after a cryptocurrency investor was robbed of NZ$320,000 ($213,000).
Though the full detail of the cryptocurrency scam was not revealed in the release, the scam case was stated to have involved the investor depositing funds, and there was an increase. However, the fund declined, and the scammer informed the victim to make more deposits.
Senior Sergeant Paul Reeves warned cryptocurrency investors to stay clear off investments that are too real to be true. Paul stated that members of the public should seek advice before making any online investment they are not sure of. He also noted that scammers are extremely persistent and can seem to be credible because they are well versed in their trade.
The trend of cryptocurrency scams continues to taint the image of digital currencies, though it is envisaged to succeed fiat currency in use shortly, the seeming cumbersome procedure of keeping and using it makes it less realistic for now.
Also, the procedure of its use and storage has made investors and cryptocurrency owners vulnerable to the activities of hackers and scammers. Cryptocurrency exchange hacks and wallet hacks also contributed to the factors debarring institutional investors from investing in cryptocurrencies till this moment.
As noted by Vitalik Buterin, the blockchain industry needs to focus on developing blockchain application for proper accessibility and usage. This will give the industry more boost and also enhance the function of cryptocurrency as a currency shortly. Also, the growth will fight against the negative trend of cryptocurrency scammers and hackers.
Further, a Google chief recently warned the cryptocurrency community to be careful of information they share on social media and also talks and boasts of cryptocurrency holdings. The chief noted that scammers target their victims through the information obtained from social media accounts which leads to email and cryptocurrency hack respectively.