Disclosure: The ideas and opinions expressed here are only for the author and do not represent the ideas and ideas of the editorial of Crypto.
With the latest Cryptocurrency report of FBI, crypto scams are growing in the United States exposure In 2023, Americans earned $ 5.6 billion – worrying about an increase of 45% from 2022. Dangerous, older adults, especially more than 65 people, were most difficult killed, collectively lost more than $ 1.6 billion. California has raised the brunt of these lands, recording the highest state of $ 1.1 billion.
This makes these damage even more striking, it is compared to the crypto-related crimes compared to the total deficit of complaints of financial fraud received by the FBI, which is compared to the total deficit, which is compared to the total deficit Responsible About 10% of complaints, but about 50% of the total loss to financial plans in 2023. This indicates the current effectiveness of the crypto scams in withdrawing large amounts from the victims. The decentralized nature of cryptocurrency can also play a role in it, with the lack of regulation of a once transaction and lack of relative irreversibility, investors should protect themselves, but if they are unable to do, they are highly insecure for scams Are.
The FBI is working to clearly warn the victims about possible scams as bad actors seek cryptocurrency through fraud investment, technical assistance, romance scams and employment scams. Despite this effort, developing financial technology is still unfamiliar to investors, and lack of financial education has made them more susceptible to crypto scams.
Does Crypto risk investors?
The Crypto industry’s financial environment, with its volatility and capacity for attractive returns, can make investors susceptible to risky investment decisions and scams. Fear of disappearance Informed 8/10 to run investment options for investors. FOMO -linked psychological pressure and fleeing decision making can be exploited by scammers, and with a lack of verified educational resources for investors, FOMO will continue a different impact on investor vulnerability.
There is also research from Investiffi found 35% of investors rely on internet search for financial knowledge to help manage their investment, while 25% do not use any source. Forty percent of the 18-25-year-old children use financial affected for their financial knowledge, and 50% of those ages are no source for their financial knowledge, so that they are susceptible to poor investment decisions Are.
This dependence on informal sources creates a crowd of investor problems. Fake accounts created by scammers can only be easily made as valid, which is being settled due to lack of necessary verification. This investor can also give rise to extreme confidence, the huge amount of online advice can introduce investors with a comprehensive understanding, especially if the new, new in the market, regardless of the relevance and validity of the advice. Extreme confidence is underestimated by reducing risks and increases sensitivity opportunities for such investors’ poor investment options or scams.
One of the obstacles to invest crypto for many account holders is a lack of financial literacy. Most investors do not have access to financial advisors due to lack of initial funds. Financial institutions should adopt educational equipment and resources; By providing educational materials such as videos, articles, webinars, or individual insights within the digital investment platform, financial institutions can distinguish their offer from Fintech.
It keeps the institute as a reliable advisor that helps account holders to create their financial knowledge and confidence.
What can financial institutions do to protect their account holders?
By offering in-house financial education resources, whether blogs, dedicated advisors, or easily understanding publications, the institutes will fill this difference, in the form of reliable, sources of information. If institutions apply these measures quickly, they can take advantage of a huge market of peopleware of crypto investment and seek accountability behind advice.
Additionally, giving personal advice through Robo-commentaries or in-house experts will support those who receive guidance from independent advisors or informal sources such as Internet. Accessible and reliable financial education can strengthen customer relations, improve engagement, and invest more account holders directly to invest and manage their finance within the ecosystem of an institution.
In the United States, financial institutions require a minimum of $ 25,000 to reach the financial advisor for financial institutions. However, most of the people interested in investing do not meet this limit, create a difference, where many potential investors are left without guidance, possibly leading them to third party apps or independent affected people Goes, which often has no financial obstacle to reach information.
Financial institutions have an opportunity to bridge this difference by offering accessible, low-career investment options. In addition to digital investment solutions, educational resources and entry-level investment equipment, individuals with small portfolio will be empowered to start investing confidently in Crypto. Account holders also get financial education to make safe crypto investment decisions and unnecessary losses.
