Scammers often target new investors to fall into their fake crypto investment by luring them with false information about the rise in the value of their assets.

SOFIA, BULGARIA, August 30, 2022 /EINPresswire.com/ -- Since cryptocurrency was introduced to the world, crypto market manipulation has also come along with it, which can be called the crypto pump and dump scheme. Cryptocurrencies like Bitcoin and Ethereum have been able to win investors' trust and maintain a decent graph in the price chart.

But some digital currencies, particularly altcoins, have a sudden unnatural growth in the charts followed by an instant decline in the price. The fraudster excites the price and circulates fake information about it through social media platforms. They promise big profits within a week or sometimes within a couple of days and tempt the investors to invest in the scheme.

A man from India lost nearly $12,000 when he realized it was a crypto scam. The victim said he was contacted by a person named Nancy, who claimed to be a London-based Hong Kong native.

Nancy shared a good knowledge of cryptocurrency and told the victim how she made good money after investing in Bitcoin when it crashed in 2020. The scammer told the victim about a new coin she had invested in and claimed it to rise in tremendous value, convincing the victim to invest in it too. By the time the victim got suspicious, it was too late, and when he tried to contact the scammer, she had blocked him on all the sites they used for communication.

Cyber-Forensics.Net, a fund recovery service specializing in scammer-tracing software, notices, "The scammer uses psychology manipulation to convince the victim. The scammer tells a fake story of how they earned good money from such a scheme and lured the people by giving them fake information about a particular coin's rise."

How Does A Crypto Market Manipulation Work?

Market manipulation means artificially influencing an asset's price or the market's behavior. This manipulation can be done by an individual or group looking to create an illusion in the market and profit from the aftermath.

The scammer tries to lure people into investing in their coins by promising a good profit rise in a short period. The scammer pressures the investor to make a quick decision and forces them not to miss a good opportunity. But once the scammer sells all their coins at a high price, their value falls drastically, leaving the investors with a significant loss.

How To Spot Crypto Market Manipulation?
There are numerous groups of fraudsters at work every day in the crypto market, targeting price manipulation to spook new investors. Let us see how to spot these frauds and stay protected from them.

◉ Pump and dump: The most used technique today in the crypto market is pump and dump. The fraudster tries to pump up the value of a coin by circulating false information to get attention. Once they get the attention of the targeted investors, the fraudsters dump the coin for a neat profit.
◉ Whale walls: Whale walls refer to an individual or an institution that holds a significant amount of cryptocurrency or other assets, which gives them the power to impact market price through their actions.
◉ Wash trading: Wash trading is a variant of the whale wall technique. The investor buys and sells the same security within a short period to mislead other market participants about the price or liquidity of an asset.

How To Avoid Crypto Market Manipulation?

Timothy Benson, a chief analyst at Cyber-Forensics, says, "Fraudsters aren't always the ones who attack an investor's wallet right away. Sometimes these fraudsters portray themselves as a friend and give advice and information that may be false. One should always double-check the facts before making big decisions."

◉ Always understand the investments before getting into them and use strategies to reduce the risk.
◉ Before investing in a new coin, try understanding how it functions.
◉ Do not invest just because someone predicted the rise in the coin's value.
◉ Do not make a quick decision under pressure.

How To Get Stolen Crypto Back From The Fraudsters?

Suppose an investor falls victim to such a scam and loses their cryptocurrency; they can seek help from a fund recovery company like Cyber-Forensics, which will explain to an individual how to recover cryptocurrency and helps the victim get the lost crypto back with their best services.

They also help the victim overcome the situation by providing the support required to assist in working with technology, authorities, regulators and lawyers to recover funds.

Is Crypto Recovery Services Legit?

Due to the rise of scammers and fraudsters, sometimes it is hard to differentiate between legitimate and fake services. To verify if a company is providing a legit service, individuals can go through the company's website and clear their doubts. Honesty and integrity are keys to picking the right company. The website should provide quality content, and the agents should express expertise. The company will never guarantee returns and won't promise a fast turnaround - any such guarantee is a sure fraud. A professional company will not speak ill of competition. They will present their strengths and be willing to do it face to face or via video conference. Defamation does not legitimize an institution; it shows they have no internal regulation. If the company's website lacks information about the services, the individual should search for a more reliable service provider. Some companies, like Cyber-Forensics.Net, with verifiable profiles, can also run a honeypot scam to catch the scammers with the help of lawyers and authorities.

About Cyber-Forensics.Net:

Cyber-Forensics.Net is committed to providing the most accurate tracing service for victims of online scams. Cyber-Forensics.Net empowers and simplifies the process of tracking down the cyber-criminals and assists in recovering the funds and creating an atmosphere for a negotiated settlement. For more information, please visit https://cyber-forensics.net/.

Peter Thompson
Cyber-Forensics.net
+1 917-920-6613
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