Russia’s First Bank Attempting To End Fraud In The Cryptocurrency Sector Of The Country

As it turns out cryptocurrency isn't going as smooth and Russia it as it has been in the United States. The former Soviet Union country, who actively participates in cryptocurrency, is having major issues with pyramid schemes and Ponzi stealing money from people in 2018. The new report was issued by the head of Bank of Russia's department for countering malpractice, Valery Lyakh.

Thousands of people across the country are investing thousands of USD worth of Russian currency, equivalent to cost exceeding $1,000 in USD often times. The problem is that a lot of cryptocurrency projects are simply fraud and the Russian government is attempting to put a stop to it. The only people who really aren't suffering are those investors who have experience, are skeptical and doing their work to ensure they're making proper Investments.

It's easy for people to commit fraud with cryptocurrency as it has potential for anonymity and people can basically create websites in a mere few days with fake teams, false promises built on systems that take people's money. Investors need to do their homework, investigating the company they are potentially investing in. The easiest way to tell if a company is fraudulent is to research the team and the company’s headquarters location.

For one, if a team has no LinkedIn profiles connected or social media of any kind, it's likely a fraud. But even then, let's say they have social media accounts, can you verify them? Because if not, the site should not be trusted. Another of the ways to determine a fraudulent website, would be the company location headquarters, if none is given or seems suspicious, it's best for investors in Russia – or anywhere else for that matter – to stay away from the website entirely.

Even if a website has famous people on it, technology experts, government officials or other renowned figures of presence, it doesn't necessarily mean the website is trustworthy or should be invested with. The key people, are the people developing the project, look at experience they've had in the past with success. Stay away from the websites without any information on the team altogether.

To put it simply look for an abundance of programmers not an abundance of advertisers, sales representatives or marketing experts. Websites like those are typically just hype gimmicks, Ponzi schemes or pyramids looking to take the naive investors wealth.

Investing in cryptocurrency for new users works better with teams or organizations, projects etc., which are simply looking to elevate their already proven success. This could be done through technological enhancements moves in the community creating different innovations, like that Justin Sun becoming a Super rep for Tron. New moves like this, show that an organization or project, which is already successful, is moving forward and will likely advance in worth/value.

Investing in cryptocurrency is a dangerous game for the naive individual, scams are everywhere, companies pop up and disappear just as fast or faster. And, at least 20% of all ICO’s have been labeled and reported as scams, run by fraudulent hackers, con-artist and individuals looking to make a quick Buck by stealing other people's money. Cyber fraud is prevalent more and more these days, so be careful about who you invest with. As for Russia, the country’s banks are working with cryptocurrency companies in an attempt to end the fraudulent activity the country is facing.

Have you invested with an ICO before? Tell us about your experience in the comments section below.

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