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By Kerry Smith<\/div><\/div>\n

Blockchain technology created a secure environment for cryptocurrencies to flourish \u2013<\/span><\/em> $\"\"$ <\/span><\/span><\/span><\/span>\u00a0but that security doesn\u2019t protect virtual money from scammers.<\/span><\/span><\/p>\n<\/div>\n

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WASHINGTON, D.C. \u2013 The Consumer Financial Protection Bureau (CFPB) released a bulletin highlighting complaints<\/a> it received related to crypto-assets. While not a major influence in the housing market yet, more buyers and sellers are accepting cryptocurrency, such as Bitcoin, in real estate sales.<\/span><\/span><\/p>\n
While the technology to create cryptocurrency is generally secure, human scammers and other criminals cause damage by targeting human cryptocurrency users.<\/span><\/span><\/p>\n
According to CFPB, consumers most commonly reported being victimized by frauds, theft, account hacks and scams. They also had issues executing transactions and transferring assets between exchanges.<\/span><\/span><\/p>\n
Many complaints claimed that the user had issues accessing funds in their account due to outright platform failures, identity verification issues, security holds, or due to technical issues with platforms. And poor customer service is a common theme in crypto-related complaints, FHFA says.<\/span><\/span><\/p>\n
\u201cOur analysis of consumer complaints suggests that bad actors are leveraging crypto-assets to perpetrate fraud on the public,\u201d says CFPB Director Rohit Chopra. \u201cAmericans are also reporting transaction problems, frozen accounts and lost savings when it comes to crypto-assets.\u201d<\/span><\/span><\/p>\n
Chopra specifically warns crypto users to \u201cbe wary of anyone seeking upfront payment in crypto-assets, since this may be a scam.\u201d<\/span><\/span><\/p>\n
Crypto-assets are a private sector digital asset that depends primarily on cryptography and a distributed ledger (such as a blockchain) or similar technology. These assets are also commonly referred to as \u201cvirtual currencies,\u201d \u201ccryptocurrencies,\u201d \u201ccrypto tokens,\u201d \u201ccrypto coins,\u201d or simply \u201ccrypto.\u201d<\/span><\/span><\/p>\n
Scammers often target crypto-assets since it can be difficult to determine the people behind many crypto-asset addresses \u2013 and scammers have used a number of techniques to obscure crypto-assets\u2019 movement to other accounts. This makes it more difficult for regulators and law enforcement to trace stolen crypto-assets.<\/span><\/span><\/p>\n
Risks identified in CFPB bulletin<\/span><\/span><\/h3>\n
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Romance scams and \u201cpig butchering\u201d<\/strong>: Crypto-assets are often targeted in romance scams, where scammers play on a victim\u2019s emotions. Some scammers employ a \u201cpig butchering\u201d technique: They spend time gaining the victim\u2019s confidence, trust and romantic affection in order to get victims to set up crypto-asset accounts. Once done, the scammers steal all their crypto-assets. In addition, many attackers pretend to be customer service representatives to gain access to customers\u2019 crypto accounts.<\/span><\/span><\/li>\n
Difficulty obtaining restitution<\/strong>: Consumers who have been defrauded or had their account hacked are often told, \u201cThere\u2019s nowhere to turn to for help.\u201d In addition, crypto-asset platforms and service providers often require mandatory arbitration and limit class-action lawsuits before allowing people to use their service. As a result, important terms can be buried within the Terms and Conditions and difficult to find.<\/span><\/span><\/li>\n
Fraudulent transactions<\/strong>: Some crypto-asset platforms don\u2019t appear to take any steps to verify one person\u2019s authority to act on behalf of another customer. They only do so after receiving a complaint and \u201coften only after several escalations by that customer.\u201d FHFA says that suggests some scammers may understand the controls to prevent money laundering and fraud \u2013 but \u201cpurposefully evade\u201d them.<\/span><\/span><\/li>\n
Risk of identification<\/strong>: Some blockchain technology users aren\u2019t aware of the public nature of the ledger that records every crypto-asset transaction. Malicious actors may be able to link those transactions and the crypto address using a consumer\u2019s identity.<\/span><\/span><\/li>\n
Higher asset volatility<\/strong>: Especially in recent months, crypto-assets have had significantly more fluctuation in value than currency backed by governments. Some crypto-assets have gone to zero or had assets frozen by exchanges.<\/span><\/span><\/li>\n<\/ul>\n
CFPB\u2019s advice<\/span><\/span><\/h3>\n
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Beware of common scams<\/strong>: In addition to romance and \u201cpig butchering\u201d scams, other tricks include merchant scams, which deliver the promise of goods or services in exchange for crypto-assets, only for the victim to find out the business was fake. Both the CFPB<\/a>\u00a0and the\u00a0 Federal Trade Commission<\/a> have online resources available to spot common scams. Note that no government agency or regulator insures crypto-assets.<\/span><\/span><\/li>\n
Report suspicious FDIC insurance claims<\/strong>: Websites and apps may fraudulently suggest government endorsement or insurance protection of crypto-assets. Firms that misuse the name or logo of the FDIC likely violate the Consumer Financial Protection Act\u2019s prohibition on deception.<\/span><\/span><\/li>\n
Submit a complaint to CFPB<\/strong>: Consumers having an issue with a consumer financial product or service can submit a complaint with the CFPB online<\/a>\u00a0or by calling\u00a0(855) 411-CFPB (2372).<\/span><\/span><\/li>\n<\/ul>\n
\u00a9 2022 Florida Realtors\u00ae<\/span><\/span><\/p>\n<\/div><\/div>\n
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\nAuthor: kerrys<\/p>\n","protected":false},"excerpt":{"rendered":"
By Kerry Smith Blockchain technology created a secure environment for cryptocurrencies to flourish \u2013\u00a0but that security doesn\u2019t protect virtual money from scammers. WASHINGTON, D.C. \u2013 The Consumer Financial Protection Bureau (CFPB) released a bulletin highlighting complaints it received related to crypto-assets. While not a major influence in the housing market yet, more buyers and sellers are accepting cryptocurrency, such as Bitcoin, in real estate sales. While the technology to create cryptocurrency is generally secure, human scammers and other criminals cause damage by targeting human cryptocurrency users. According to CFPB, consumers most commonly reported being victimized by frauds, theft, account hacks and scams. They also had issues executing transactions and transferring assets between exchanges. Many complaints claimed that the user had issues accessing funds in their account due to outright platform failures, identity verification issues, security holds, or due to technical issues with platforms. And poor customer service is a common theme in crypto-related complaints, FHFA says. \u201cOur analysis of consumer complaints suggests that bad actors are leveraging crypto-assets to perpetrate fraud on the public,\u201d says CFPB Director Rohit Chopra. \u201cAmericans are also reporting transaction problems, frozen accounts and lost savings when it comes to crypto-assets.\u201d Chopra specifically warns crypto users to \u201cbe wary of anyone seeking upfront payment in crypto-assets, since this may be a scam.\u201d Crypto-assets are a private sector digital asset that depends primarily on cryptography and a distributed ledger (such as a blockchain) or similar technology. These assets are also commonly referred to as \u201cvirtual currencies,\u201d \u201ccryptocurrencies,\u201d \u201ccrypto tokens,\u201d \u201ccrypto coins,\u201d or simply \u201ccrypto.\u201d Scammers often target crypto-assets since it can be difficult to determine the people behind many crypto-asset addresses \u2013 and scammers have used a number of techniques to obscure crypto-assets\u2019 movement to other accounts. This makes it more difficult for regulators and law enforcement to trace stolen crypto-assets. Risks identified in CFPB bulletin Romance scams and \u201cpig butchering\u201d: Crypto-assets are often targeted in romance scams, where scammers play on a victim\u2019s emotions. Some scammers employ a \u201cpig butchering\u201d technique: They spend time gaining the victim\u2019s confidence, trust and romantic affection in order to get victims to set up crypto-asset accounts. Once done, the scammers steal all their crypto-assets. In addition, many attackers pretend to be customer service representatives to gain access to customers\u2019 crypto accounts. Difficulty obtaining restitution: Consumers who have been defrauded or had their account hacked are often told, \u201cThere\u2019s nowhere to turn to for help.\u201d In addition, crypto-asset platforms and service providers often require mandatory arbitration and limit class-action lawsuits before allowing people to use their service. As a result, important terms can be buried within the Terms and Conditions and difficult to find. Fraudulent transactions: Some crypto-asset platforms don\u2019t appear to take any steps to verify one person\u2019s authority to act on behalf of another customer. They only do so after receiving a complaint and \u201coften only after several escalations by that customer.\u201d FHFA says that suggests some scammers may understand the controls to prevent money laundering and fraud \u2013 but \u201cpurposefully evade\u201d them. Risk of identification: Some blockchain technology users aren\u2019t aware of the public nature of the ledger that records every crypto-asset transaction. Malicious actors may be able to link those transactions and the crypto address using a consumer\u2019s identity. Higher asset volatility: Especially in recent months, crypto-assets have had significantly more fluctuation in value than currency backed by governments. Some crypto-assets have gone to zero or had assets frozen by exchanges. CFPB\u2019s advice Beware of common scams: In addition to romance and \u201cpig butchering\u201d scams, other tricks include merchant scams, which deliver the promise of goods or services in exchange for crypto-assets, only for the victim to find out the business was fake. Both the CFPB\u00a0and the\u00a0Federal Trade Commission have online resources available to spot common scams. Note that no government agency or regulator insures crypto-assets. Report suspicious FDIC insurance claims: Websites and apps may fraudulently suggest government endorsement or insurance protection of crypto-assets. Firms that misuse the name or logo of the FDIC likely violate the Consumer Financial Protection Act\u2019s prohibition on deception. Submit a complaint to CFPB: Consumers having an issue with a consumer financial product or service can submit a complaint with the CFPB online\u00a0or by calling\u00a0(855) 411-CFPB (2372). \u00a9 2022 Florida Realtors\u00ae X ADVERTISEMENT Go to Source Author: kerrys<\/p>\n","protected":false},"author":4,"featured_media":7298,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts\/7297"}],"collection":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/comments?post=7297"}],"version-history":[{"count":0,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts\/7297\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/media\/7298"}],"wp:attachment":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/media?parent=7297"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/categories?post=7297"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/tags?post=7297"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}