The UAE’s cybersecurity council warns about the possibility of fraud in Cryptocurrencies.

The Cyber Security Council of the UAE government has alerted residents about the potential dangers linked to fraudulent activities involving cryptocurrencies. The council stressed the importance for traders to stay alert because these digital currencies present a global threat that affects multiple countries.

Dr. Mohammed Hamad Al Kuwaiti, head of the Cybersecurity Council, states that the risks linked to cryptocurrency fraud extend beyond financial losses. In addition to monetary harm, he emphasizes that it also jeopardizes individuals’ privacy and erodes the crucial trust essential for the functioning of the cryptocurrency market.

He pointed out that the focus is currently on the risks and regulatory measures, as recent data and studies have shed light on worries about fraud in digital currencies and the possible consequences.

He highlighted the importance of continually improving cybersecurity measures in order to effectively minimize these risks and protect the financial system from current digital threats.

Al Kuwaiti urged cryptocurrency investors to be cautious and wary of potential exaggeration when encountering highly appealing offers.

He gave an explanation about common fraudulent methods in cryptocurrencies, which include sending deceptive emails or text messages to deceive users into revealing their private and financial information. In addition, fraudsters steal cryptocurrency wallets by exploiting applications or websites, or by manipulating people socially.

He provided an explanation regarding a deceptive strategy wherein individuals falsely promise guaranteed profits from cryptocurrency investments, but instead they covertly steal away the funds of unsuspecting customers.

Al Kuwaiti highlighted the importance of adopting secure practices to protect individuals and businesses from cryptocurrency scams. He recommended several actions to achieve this, including being wary of tempting offers, using strong passwords for each account, enabling two-factor authentication, becoming familiar with common fraudulent methods, and verifying the legitimacy of platforms or companies before investing. These steps are essential to guarantee safety.

Information from CoinPedia and PYMNTS reveals that an astounding $2.38 billion was illicitly acquired from December 2022 to November 2023, posing a substantial threat to the security of digital assets.

Ethereum bears the brunt of about 38 percent of cyber attacks, highlighting its position as the primary target in the world of cryptocurrencies.