The Attorney General of state California, Xavier Becerra, issued a warning for investors and consumers on Friday, highlighting the rise in cryptocurrency scams. The warning aims to inform people of the rising crypto-related scams that are taking round online and stay cautious. The apparent reason for the announcement may be linked to the most recent scam perpetrated by hackers on Twitter last month. Hackers managed to access high profile twitter accounts and sent out tweets soliciting bitcoins from their followers.
California’s Attorney General warns against increasing crypto scams.
California’s Attorney General Xavier Becerra tweeted, “as the recent hacks have shown, cryptocurrency scams are on the rise.” “Fraudsters often rely on the excitement of innovative industries to persuade people to offer up their cash in hopes of earning far more in return,” he added. In this age and time, when there are several ways to earn money online, scammers take advantage of that and lure them in vulnerable investors. The Attorney General outlined a host of ways that scammers have used cryptocurrencies in the past. These include fraudulent coin offerings (ICOs), fake exchanges and wallets, and Ponzi or pyramid schemes, amongst others.
Crypto scams around the world continue to rise amid the pandemic.
Crypto scams have increased around the world amid the ongoing COVID-19 pandemic. Earlier this year, the US Federal Bureau of Investigation had issued a warning saying scammers might be looking to unleash a surge in crypto-related scams. Several countries also reported a rise in cryptocurrency scams that included a spike in ransomware attacks, Ponzi schemes, and other different types of scams involving cryptocurrencies.
There are several types of crypto scams that have become frequent: fake giveaways, sextortion, fake exchanges, fake ICO’s, bitcoin recovery, video scams, pyramid schemes, and the list on. Earlier, accounts of several famous people on Twitter were hacked to solicit bitcoins from their followers.
As the recent hacks have shown, cryptocurrency scams are on the rise.
— Xavier Becerra (@AGBecerra) August 7, 2020