Over the last twelve months, investigative reports indicate that cryptocurrency scams have rapidly increased, costing individuals and companies billions of dollars in losses. With Bitcoin perhaps the best known, cryptocurrency trading has attracted more than its fair share of fraudsters who exploit human weaknesses. Such weaknesses include being naïve and ill-informed. The anonymity of the trading provides fraudsters with the cover and negligible risk of being identified.
Bitcoin scams are when people or groups attempt to trick or manoeuvre unsuspecting victims into sending them Bitcoin.
Crypto scammers are not much different from the traditional financial swindler. They lure eager investors into a false sense of security, usually by offering incredible deals with impressive profits on their “investments". Bank Windhoek customers have reported incidents where they were defrauded by scammers who convinced them on social media to "invest" with them in Bitcoin, only to disappear with the money.
Many international scams are much more sophisticated in their internet presence, creating a sense of comfort to invest with them. The following are red flags of possible cryptocurrency scams to be aware of: