Trader Loses $70 Million By Pressing Wrong Button

Fraud in the cryptocurrency market poses a growing threat, luring traders of all experience levels into elaborate traps. Forms of fraud vary from theft of the world's most famous currency, Bitcoin, to cryptocurrency ATM scams. This suggests an escalation of risks in the digital currency market.

The growing popularity of digital currencies is attracting the attention of fraudsters. They use complex methods to trap their victims, exploiting the complexity of cryptocurrency transactions.

Victims Lose More Than $70 Million in Bitcoin and Cryptocurrency Scams

In one notable scam, a Bitcoin trader recently mistakenly sent $69.3 million to a fraudulent address. And he has I confirm Blockchain security company CertiK reported that a scam known as “address poisoning” had occurred. Fraudsters create addresses that closely resemble real addresses to receive digital currencies. As a result of this error, the trader's balance on the Coinbase platform decreased by approximately 97%.He had nothing left in his wallet Only $1.6 million.

“Address poisoning” involves fraudsters sending small amounts of money to real users’ accounts, in the hope that this will make them vulnerable to errors in future transactions. Since blockchain transactions are public, it becomes easier for fraudsters to carry out their schemes.

At the same time, the sharp rise in cryptocurrency scams shows no signs of slowing down. And according to Report According to the 2023 FBI Cybercrime Report, these scams cost investors $3.94 billion. This represents the majority of fraudulent investment losses that year.

Cryptocurrency trading platforms such as Trezor advise users to carefully verify addresses and carry out test transactions before sending large sums to pay for such scams.

And he has I wrote Trezor company:

“The most important step to avoid this type of fraud is to thoroughly verify and double-check the address before confirming the transaction. This is essential for all transactions, especially when sending high-value assets. The only way to ensure safety is to proceed with care. check each letter of the address.

Cryptocurrency exchange fraud

On another front, I warned Denver Police Department of scam involving cryptocurrency ATMs. Police say scammers posing as government officials tricked a woman into believing she had missed a court hearing and that a warrant had been issued for her arrest.

To force her to avoid alleged imprisonment, she was ordered to deposit money as "bail" using a cryptocurrency option at a self-service banking kiosk. Unfortunately, she lost $14,000 before realizing she was being scammed.

These incidents highlight a growing challenge within and outside the cryptocurrency community: recognizing and avoiding scams. Experts emphasize the importance of vigilance and skepticism, especially regarding transactions requiring the use of cryptocurrencies. As scammers continue to develop their methods to exploit unsuspecting victims.

Guillermo Fernandes, CEO of Blockpliance, told BeInCrypto:

"The best weapon against these scams is awareness. Most ATM companies use software that prevents the victim from sending to an address known to be used for fraudulent purposes, but scammers can circumvent these controls by giving each victim a completely new address and recovering the money later This is why the real battle must be fought on the awareness front, because education and repetition are the key to preventing people from making mistakes. logic that could cost them huge sums of money.”