Low investors’ confidence towards cryptocurrencies has been linked to the rising incidence of frauds currently threatening adoption
It is also responsible for
In August, the City of London Police noted that there had been 203 reports of cryptocurrency fraud in the months of June and July.
Data from Action Fraud, its national fraud and cybercrime reporting center disclosed that victims lost £2.1 million –
Director of Action Fraud, Pauline Smith, in an interview with the Financial Times noted that “opportunistic fraudsters are taking advantage of this market, offering investments in cryptocurrencies and using every trick in the book to defraud unsuspecting victims.
”Also in August,
The Australian Competition and Consumer Commission (ACCC) also raised scam alerts because of a 12month high incidence of scams involving cryptocurrencies.
Australia-based bitcoin platform, bitcoin.com.au recently highlighted four of the major cryptocurrency scams of 2018 to include OneCoin, Centratech, Dragon Coin, and NCR Coin. These are fake altcoins that have defrauded unsuspecting customers of their money.
As bitcoin.com.au pointed out, cryptocurrency scams give the market a very bad name. It deflates the public trust that the market needs to grow which makes it pertinent to ask, are cryptocurrency exchanges doing enough to protect their customers.
In Nigeria where the market is
To curb this menace, operators in the country are putting strategic measures together, especially in the areas of awareness.
Recently, Luno, one of the leading exchanges in the country, added an extra layer of security for its customers over 60 years of age
“This added layer of security will help combat fraudulent and scammer activities that target vulnerable customers, as we’ll be able patronized,” a statement from Luno noted.
“This action helps you, and Luno, as it allows us to make sure no one is opening an account with your name and personal details.”
According to Luno, there is a reason why this is significant, adding: ‘’It is often taken for granted that while young adults are leading the charge in digital products adoption, senior adults are not just looking at them but are also actively learning and embracing these innovations.
Their adoption of digital innovations also exposes them to cyber criminals and leaves them even more vulnerable than young adults who may be more alert. It is therefore imperative to make them a top
Country Manager at Luno, Owenize Odia, said: “Luno monitors accounts searching for clues and patterns of fraudulent activity in locations where fraud is higher than the benchmark.
As a result, Luno has identified that customers over the age of 60 are being targeted at a higher rate by scams.”