Every emerging technology attracts a lot of people who try to abuse it for quick gains. The new investment avenue of cryptocurrency that has unleashed a storm in the world of investors has already got fraudsters who are trying to swindle eager investors. These fraudsters mostly feign to be representing crypto exchanges. Another common approach that fraudsters adopt is to pose as technical support. Since the technology is new and none has got any clear idea of the processes involved, it is very easy to be convinced by any fraudster and hand over vital bank account details. Once you do that, your bank account can be cleaned out even before you fully comprehend that you have stepped into the trap of fraud and want to cancel your transaction.
It is essential that one should be aware of the social media handles of the crypto exchanges and their phone numbers. It will minimise the chances of fraudsters approaching you. At no time should you give anyone remote access to your phone or computer since they can access all data stored in these devices. Crypto exchange officials would not ask for PINs or passwords or other sensitive information, so don’t pass on such information to anyone calling or sending message or mails to you asking for those. Also beware of names of companies appearing on social media or one the other side of a telephone call trying to help you with investment in cryptocurrencies. Verify at every step.
Many common citizens have already experienced a situation where a completely unknown person includes your number is a WhatsApp group claiming to be a group of investors in cryptocurrency. Unless one personally knows the administrator, it is prudent to exit such groups.
So far there is no crypto legislation in India and, therefore, common citizens who want to invest in this asset class should be doubly cautious about investing since it is a digital space where money can flow out in the blink of an eye. In the absence of any legislation, there is no regulator and no institution to fix responsibilities and ensure investor protection. Cryptocurrency is an emerging asset class that constantly hits the headlines for its fantastic returns which helps in heightening the excitement around them. But one should never forget that discretion is the better part of investor valour and it is better to be safe than sorry.
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