Over the past year, Bitcoin has become a very popular cryptocurrency in South Africa. However, it appears that investing in cryptocurrencies has resulted in financial problems for some residents. Many South Africans are on the verge of bankruptcy after purchasing Bitcoin.
“We spoke to a number of victims who wanted to get their debt restructured because they couldn't keep making payments,” said Neil Rose, chief executive of the lender. "Some of them took huge risks to acquire cryptocurrencies, such as mortgaging cars and houses, taking out loans on cards. Some of our clients were victims of hacking attacks or hacking of wallets. To my surprise, many of them became victims of obvious fraudulent transactions that promised their clients implausibly large profits."
However, in most cases, South Africans lost money due to the high volatility and unpredictability of the market. Werner Van Rooyen, head of business development and marketing at Bitcoin Luno, has compiled a list of signs of fraudulent cryptocurrency activity:
1. Guarantee of high income/interest
2. Guarantee that “the client cannot lose funds”
3. A small amount of information about the company and owners on the Internet
4. Difficulties in withdrawing funds
5. Referral links with high bonuses
6. Calls to “urgently invest now”
How to know that you are faced with scammers who are “selling” mining equipment:
1. Failure to legally prove ownership of any equipment
2. New website (you can check the site on the archive.org portal)
3. High profits from referral links
4. Promise of guaranteed profit
According to https://www.iol.co.za
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