Bitcoin Fraud
As Joe Biden leads the global economy blindly toward the cliff people are desperately searching for financial safe havens. Many have decided that Bitcoin, the first and by far the most valuable cryptocurrency, is their best bet. But is it? Cryptocurrencies are virtual currencies whose main attraction is their anonymity: people can buy and sell them and no one (i.e., HMRC) is the wiser. The problem is that kind of anonymity tends to attract tech-savvy scammers, and Bitcoin fraud has become a major problem.
Beware the Messenger
A good example of Bitcoin fraud is the case of Heather Morgan and Ilya Lichtenstein, a husband and wife team who lived in New York City. In early 2020 Heather authored an article in Forbes magazine warning the public about the rising tide of crypto fraud. In February 2022 both Heather and her husband were arrested for being in possession of and attempting to launder more than £3 billion in stolen Bitcoins that were traced to the 2016 hack of the cryptocurrency exchange Bitfinex.
Not an Isolated Incident
The Morgan/Lichtenstein case represents one of the largest examples of financial fraud in history, but it is not an isolated incident. In fact, all the recent data indicates cases of Bitcoin fraud in particular and crypto fraud in general are exploding. In 2021 reported cases of crypto fraud in the UK rose to 8,614 from 3,983 in 2020. While in the States reported cases of fraud have risen by 24,000% in the past 5 years.
Bitcoin is not the only cryptocurrency one has to be wary of. Last year the creator of a new cryptocurrency called SushiSwap made off with more than £11 of investor money. While the creator of a cryptocurrency named after the popular TV show Squid Game stole more than £2.5 million from his investors and disappeared.
How to Protect Yourself from Bitcoin Fraud
Sec Tech provides world-class security services for high-profile individuals, businesses and property owners, including high-end, high-tech protection. Our cybersecurity team members are experts in their chosen fields and can spot Bitcoin fraud and other examples of malicious tech-related activity before it makes a victim of you or your loved ones.
If you are of a mind to invest in Bitcoin or any other cryptocurrency get in touch with the team at Sec Tech first. While we are not financial advisers we may be able to help you avoid making a very costly crypto mistake.
