Crypto scams are an everyday thing, it seems. If you dabble in crypto, you are putting yourself at risk to one extent or another. For people in Brazil, however, it’s being reported that this danger is somehow considerably larger than one might expect.
Are Crypto Scams in Brazil the New Norm?
Brazil is the largest country in South America, and one of the largest countries in the world. It’s also a huge cryptocurrency haven. This has both positives and its negatives. On one hand, it exposes a lot of its people to a whole new wave of digital technology.
In a country where the banking structure is potentially lacking and where financial services are in question, digital currency and blockchain can open many doors for the people of the country to retain their financial independence and gain access to monetary products they otherwise would not have been able to utilize.
Unfortunately, as mentioned before, there’s also a very risky side to cryptocurrency. There’s the possibility of hacks, SIM-swaps, crypto jacking and various other attempts made by hackers or malicious actors to get their fingers on funds they didn’t earn.
As recently reported by Brazilian news television, the country is under the gun from multiple cryptocurrency scams. One involves a company that customers claim is taking on the form of a pyramid scheme. In addition, several other customers are accusing multiple companies throughout Brazil of having taken all their money and swindled their savings with phony promises of “easy money.”
One such company is known as the HPX platform. One man - who refused to give his name in an interview - stated that he invested crypto funds in the company but was unable to withdraw them later on. Another interviewee claims that several of these ongoing cryptocurrency pyramid schemes are advertised through platforms such as WhatsApp and YouTube to try and get people from all ages (and all angles) involved.
Here’s the big problem: we mentioned that these investors were attracted to “easy money.” There is no such thing as “easy money.” All experienced traders and people who work for a living know this, so the idea that a company is advertising money as such is either terribly incorrect or has some trick up its sleeve.
This Happens Everywhere
It’s very strange that after everything that’s happened, that even though the crypto space is compromised on a regular basis and that several previous scams and hacks have decorated news platforms, people are still falling for this.
At the same time, however, many of these scams are not simply reserved to Brazil. One recent case - as reported by Live Bitcoin News - took place in the Middle East and involved an Instagram influencer getting many people to invest in phony real estate token platforms over the past few years.
Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries.
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