Social media a breeding ground for crypto fraud, report says

Since the advent of the internet, getting things done is just with a click of a button. The same can also be said of social media. Social media has gradually taken over the mode of communication nowadays. The existence of social media has greatly positively affected the cryptocurrency market. Social media has further promoted the value of cryptocurrency with platforms such as Twitter, Facebook, Telegram, and Internet Relay Chat, slack, among others.

Right now, cryptocurrency is a global phenomenon, meaning you can monitor its rise or fall via several social media platforms. Investors now make use of social media to discuss cryptocurrency. Important discussions and announcements are now disseminated through social media.

Despite the positive effects of social media on cryptocurrency, however, fraudsters are preying on social media to scam unsuspecting members of the public. Due to lack of transparency and the fact that cryptocurrency is not regulated; cybercriminals are now targeting this market to make money.

According to Seema Mody, a newscaster on CNBC business news, “Fraudsters are taking advantage of the emerging cryptocurrency by creating their fictitious coins and performing scam via phony initial coin offering and also manipulating prices. In several cases, they use a pump and dump schemes to inflate the price of small or less known cryptocurrency using social media apps like Twitter and Reddit to spread the news.”

She continued that “social media is a breeding scam with a profile created to imitate exchanges to trick customers into disclosing their credentials essentially. Earlier this week, Facebook announced that it is banning advertisement and in the United States, SEC has been warning investors about the risks in investing in this new space. SEC and CFTC are set to testify during a US Senate hearing next Tuesday on topic virtual currencies.”

She further said investors could protect themselves through various ways but not limited to; being careful of unsolicited messages offering huge returns on investment, enabling multi-stage authentication, and enforcing strong password security, among others.