Bitcoin continues its gains, approaching the $100,000 mark. As the world’s most valuable cryptocurrency surges in price, warnings of cryptocurrency scams are growing.
The Identity Theft Resource Center said the record high prices are creating a sense of urgency to invest in cryptocurrencies, which scammers are exploiting to deceive investors.
Cryptocurrency-related fraud losses totaled more than $5.6 billion last year, according to reports from the FBI's Internet Crime Complaint Center.
Fraudsters claim to offer exceptional returns, using 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 that include links to fake websites that look similar to legitimate platforms.
Tips to avoid fraud
1. Check suspicious offers: If an offer seems too good to be true, it's probably a scam.
2. Access websites directly: Use official links instead of clicking on suspicious links.
3. Beware of paying only in cryptocurrencies: This is often a sign of a scam.
4. Verify the legitimacy of companies and digital tokens: Search for the company in official databases, and make sure that the coins are listed on trusted platforms such as Binance, OKX, or other verified ones.
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.