I apologize for the lengthy discussion on crypto currencies in my previous columns. However, the issue of fraud in this area is becoming more prevalent and it’s important to be aware of the risks. In addition to my previous five columns on this topic, I will cover some research and red flags to look out for.
Unfortunately, we are at a disadvantage when it comes to dealing with sociopaths and criminals who have no moral compass. While we may be cautious, we often believe that people wouldn’t do something unethical, leaving us vulnerable to fraud. However, these individuals see us as easy targets and will stop at nothing to take advantage of our trust and naivety.
Sociopaths lack empathy and therefore have no qualms about manipulating and deceiving others. It’s important to educate ourselves about their behaviors in order to protect ourselves. Trying to reason with them or expecting them to play fair is a waste of time.
Conmen are successful because they are clever and charismatic. These are also the characteristics of a sociopath. They see their victims as stepping stones to their own success, not as fellow human beings with families to support. It’s important not to try and impose our own sense of fairness onto these individuals, as it only gives them an advantage over us.
Their fraudulent schemes are well thought-out, using psychological tactics and artificial intelligence to target millions of people in a matter of seconds. They rely on the fact that some individuals will fall for their tactics and invest large sums of money.
There are different ways to invest in crypto currencies, such as buying them directly or investing through brokers, schemes, funds, or futures. However, it’s important to understand that a crypto currency does not have inherent value and its “valuation” is often arbitrary. It’s a risky investment and one must do due diligence before getting involved.
When researching a crypto currency, look at their white paper, technical information, and team members. It’s important to thoroughly review their background and credibility. Keep in mind that even well-known individuals in the industry, like Sam Bankman-Fried, have been involved in fraudulent activities.
Check for regulatory compliance and independent reviews. Be cautious of reviews on platforms like Trustpilot, as they can be artificially generated. Look for scam alerts from industry watchdogs and pay attention to any red flags mentioned in community alerts and social media posts.
In the words of Albert Einstein, “If you couldn’t explain it simply, you didn’t understand it.” This applies to investing in crypto currencies. If you can’t fully comprehend the investment, it’s best to avoid it.
- Peter McGahan is chief executive of independent financial adviser Worldwide Financial Planning, which is authorised and regulated by the Financial Conduct Authority. If you would like a fact-sheet with all my previous columns, or if you have a financial query, call 028 6863 2692.
