Cryptocurrency fraud falls into two main categories:
- Scams soliciting investment
- Theft of accounts
The number of cryptocurrency scams is decreasing as people become more suspicious of unsolicited offers. This seems like a natural reaction to the publication of fraud risks. But the number of security breaches and account thefts is increasing sharply. Even sophisticated owners fall victim to this theft and are powerless to prevent it.
I’ve had clients lose all of their money invested in cryptocurrency to both types of cryptocurrency frauds over the past year. Unfortunately, the trend is likely to continue because proposed corrections seem to be stalled.
My own practice focuses on two cryptocurrency protection themes:
- Client education to avoid scams.
- Business contracts designed to avoid security breach risk through the conversion process to bank payment.