Millennials Are At High Risk For Bitcoin & ICO Fraud -- Why?

[sophiaAG]

Hi, just wannt share this article as it's a good read, especially for the younger crypto enthusiasts we have here in the room.  Hope this helps you more in your journey.

(here's the link to the whole article:  https://www.forbes.com/sites/johnwasik/2018/03/05/why-millennials-are-at-high-risk-for-bitcoin-ico-fraud/#25ee387185ea)

Whenever new technology comes on the scene, most people are optimistic about how some software or gadget will change the world.

Scamsters also prick up their ears, hoping to rip people off who are enthusiastic about new technology and the promise to make money with little or no work.

According to a new survey by the North American Securities Administrators Association (NASAA), tech-hungry young people are increasingly the targets of cyber scams. Here's what the group found:

-- Regulators viewed Millennials as both most likely to use fintech products (84%) and also most at risk of fraud from fintech products (41%).

-- While Baby Boomers were viewed as least likely to use fintech, they were still viewed as the second most likely demographic group to be at risk of fintech fraud (38%).


-- Not all risks are created equal: While all regulators viewed fintech at large as having a high (28%) or moderate (72%) chance of fraud, the risk varied widely by specific products.

-- Initial Coin Offerings (ICOs) and cryptocurrencies were most commonly identified as high risk (94%) and robo-advising being least commonly identified as high risk (3%).

-- More than half of regulators (56%) said they viewed fraudsters as the most knowledgeable about the risks of fintech, nearly all respondents felt that investors were the least knowledgeable about these risks (94%).

What You Can Do

One simple way to avoid fraud is to reject solicitations. Whenever you see a mobile ad or email telling you about overnight riches in cryptocurrencies, avoid clicking on their links.

Also keep in mind that today's fraud merchants use centuries-old techniques to ensnare victims, such as these ruses, according to Fintech.Finance:

"At the lowest level, malicious types will always find a way to trick unsuspecting victims, and with digital currencies it is often a case of new tools but old tricks. Common Bitcoin scams may well look familiar to you. They include:

Malware downloads and phishing
Bitcoin pyramid schemes
Bitcoin investment schemes
Fake exchange scams
Don't fall for any of these come-ons. They are designed to get your money quickly. And make sure your internet security software is up to date and you know what a "phishing" email looks like: They will ask you to send personal or banking information to a website. This is a sure route to identity theft.

 

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[lizardbtc]

Millennials are ones that who invest the most, even if they invest in small amounts they surley are majority. With their lack of knowledge it is easy to get into scams, once you understand what is bitcoin and cryptocurrency and how things move around you will understand and have knowledge to easily evade scams. Heck ask yourself is it to good to be true?

[jseverson]

Oh, so this was basically just a survey among regulators?

Either way, I kind of agree; millenials are more likely to "invest" in something tech related, they're more likely to jump on bandwagons, and they generally have less life experience to be able to detect common scams. I would also like to note that most scams are just the same thing just dressed up in different ways, so older crowds are more likely to recognize them.

That being said, is there really a demographic that's not at high risk for scams? The article basically said that everyone is at risk. It's sad, but there are plenty of scammers because there are plenty of targets.

[riderinred]

Oh, so this was basically just a survey among regulators?

Either way, I kind of agree; millenials are more likely to "invest" in something tech related, they're more likely to jump on bandwagons, and they generally have less life experience to be able to detect common scams. I would also like to note that most scams are just the same thing just dressed up in different ways, so older crowds are more likely to recognize them.

That being said, is there really a demographic that's not at high risk for scams? The article basically said that everyone is at risk. It's sad, but there are plenty of scammers because there are plenty of targets.

Somehow my personal experience is that age does not matter as much as technical understanding and money management does.
I have seen 40ish year old people who invested into scam ICOs, I have also seen older people taking loans out and getting rekt instantly.

On the other hand I have seen "millenials" doing fine in this space. With that I do not mean teenagers but rather 20+ people.
They also get rekt, but in my personal experience they get the underlying principles of irreversible transactions and so on easier.

One of the older guys once was like "They stole my money, I'mma call the helpdesk!"

[jseverson]

Somehow my personal experience is that age does not matter as much as technical understanding and money management does.

I completely agree. Millennials do end up being more vulnerable in the end though, simply because they're exposed to crypto much more. Older people can't get scammed in the cryptospace if they're not in it after all.

It all depends on the individual and how well equipped they are in the end. I'd say this is more of general statistical analysis rather than actual risk assessment for people entering the market.

[Ferdinand Thomas]

Hi, just wannt share this article as it's a good read, especially for the younger crypto enthusiasts we have here in the room.  Hope this helps you more in your journey.

(here's the link to the whole article:  https://www.forbes.com/sites/johnwasik/2018/03/05/why-millennials-are-at-high-risk-for-bitcoin-ico-fraud/#25ee387185ea)

Whenever new technology comes on the scene, most people are optimistic about how some software or gadget will change the world.

Scamsters also prick up their ears, hoping to rip people off who are enthusiastic about new technology and the promise to make money with little or no work.

According to a new survey by the North American Securities Administrators Association (NASAA), tech-hungry young people are increasingly the targets of cyber scams. Here's what the group found:

-- Regulators viewed Millennials as both most likely to use fintech products (84%) and also most at risk of fraud from fintech products (41%).

-- While Baby Boomers were viewed as least likely to use fintech, they were still viewed as the second most likely demographic group to be at risk of fintech fraud (38%).


-- Not all risks are created equal: While all regulators viewed fintech at large as having a high (28%) or moderate (72%) chance of fraud, the risk varied widely by specific products.

-- Initial Coin Offerings (ICOs) and cryptocurrencies were most commonly identified as high risk (94%) and robo-advising being least commonly identified as high risk (3%).

-- More than half of regulators (56%) said they viewed fraudsters as the most knowledgeable about the risks of fintech, nearly all respondents felt that investors were the least knowledgeable about these risks (94%).

What You Can Do

One simple way to avoid fraud is to reject solicitations. Whenever you see a mobile ad or email telling you about overnight riches in cryptocurrencies, avoid clicking on their links.

Also keep in mind that today's fraud merchants use centuries-old techniques to ensnare victims, such as these ruses, according to Fintech.Finance:

"At the lowest level, malicious types will always find a way to trick unsuspecting victims, and with digital currencies it is often a case of new tools but old tricks. Common Bitcoin scams may well look familiar to you. They include:

Malware downloads and phishing
Bitcoin pyramid schemes
Bitcoin investment schemes
Fake exchange scams
Don't fall for any of these come-ons. They are designed to get your money quickly. And make sure your internet security software is up to date and you know what a "phishing" email looks like: They will ask you to send personal or banking information to a website. This is a sure route to identity theft.

 

i think its a good thing that millennials start investing somehow. and of course lost is an integral experience to learn about the space.

[wandino]

The amount of fraud/scams only keeps increasing. Some people are gullible and believe these easily. More awareness is needed

[Ahyke93]

All over the media, the age group that seem engrossed with the blockchain evolution seem to be the millennials. The are the replacement to an already passing generation and they seem to be the most curious and fascinated by changes like these.
 
So let them make all the mistake they can, they will eventually learn and adapt. However, age is still just a number. 

[MintDice]

A huge driving force behind the massive rush into Bitcoin and cryptocurrencies is the millennial generation! We touch on this more in our blog post: bit.ly/MillennialsFuelingCrypto
The downside is that inexperienced or uninformed millennials can easily get sucked in by bad information and make poor investment decisions. However, with careful choices, Crypto is the perfect innovative fit for millennials.

[seoincorporation]

Every newbie can be subject to scams. There is not related to the age they have but their lack of experience. Now, why millennials? Just because they use more the internet. That's all, just statistics. The more you use something, the bigger possibilities of touching the bad part of it. If teenagers make more skate, then they can suffer more skate-type-injuries, of course; if middle-age people use more the car, the more of them can be in an accident. So, this is just based on the use of one thing and does not demonstrate anything at all.
I believe Millennials are the most common-crypto-users, so they will be both: the ones whose profits are the best, and the ones that suffer more scamming. But it is just because they are the ones who use more the platform, that's all.

[MeSoCorny]

Millennials are pretty well documented as being the generation that wants to step into anything, whether it be a job or investment, and be making a million dollars from it in a very short time period. With everyone looking to find the next million dollar alt coin it makes sense that a generation that grew up during the digital revolution (some of us were fortunate to have been there for the birth of it and been ingrained the entire way), as well as the common trait I spoke of initially, would be at risk of going broke trying to find the next million dollar coin. Most millennials will have an easy time figuring out how to get started and invest in any kind of crypto since its a very young field and has received so much attention since Bitcoin, but wouldn't have the first clue about how to start a brokerage account and invest in the actual stock market using margin, buting stocks/ options, etc. Nor do many of them have an amount they deem sufficient to even try (sure they can do penny stocks but once again, most don't know how to open these accounts and only know about Bitcoin because it's easy as hell to get into). But they see a 7 cent shitcoin they can buy 5,000 of in hopes it goes to $1000 a coin and they are all about it. Problem is many dont know much more than using the main coin exchanges and just learn about the already mainstream coins that everyone else knows about rather than being able to see them before they are mainstream like you can do here.

[braindeadgenius]

Actually, I would say that the older generations would be at a higher risk due to their lack of knowledge. The younger generations tend to know a lot more about tech and can easier spot fakes than the older generations can. How many young people do you see fall for phone scams vs older people?

[MeSoCorny]

How many young people do you see fall for phone scams vs older people?

Except most "older" people, the ones you would be referring to, don't even bother with the tech and crypto. Those of us who were born when it (computers etc) began and have been with them the entire path understand tech better than the majority of millennials could ever hope to. If you are old and not into tech you probably don't even think about it.

[braindeadgenius]

How many young people do you see fall for phone scams vs older people?

Except most "older" people, the ones you would be referring to, don't even bother with the tech and crypto. Those of us who were born when it (computers etc) began and have been with them the entire path understand tech better than the majority of millennials could ever hope to. If you are old and not into tech you probably don't even think about it.

You would be correct. But the chance of an older person who uses technology being deceived is higher than that of someone who is younger. Though, everyone fell for BCC, so.