Following the 2020 UN Report on Trade and Development, which estimates illicit losses of USD 88.6 million each year in Africa alone, of which 2,1% of all global crypto transactions globally were categorised as illicit, experts have put forward four major tips to keep cryptocurrency trading safe.
The four tips are:
- Use a recognised, reputable exchange, as the significant investment in security will mean that your money remains safe.
- The weakest link is human beings. It is very rare to see actual hacking in crypto financial fraud.
- It is true that crypto is volatile but be aware that if something sounds too good to be true, it usually is.
- Treat your login information with as much respect as you do your bank login details.
Meanwhile, Eva Crouwel, Head of financial crime at Luno, a leading global cryptocurrency platform, has disclosed that while financial crime is on the rise, there has been a decline in illicit crypto transactions.
Quoting foremost blockchain analysis company Chainalysis, Eva highlighted three main reasons for the rise in financial crimes across the continent.
“First, financial education levels tend to be lower in Africa and combined with financial hardship caused by Covid-19, citizens are seeking good returns. Second, crypto is a new technology, so users are uncertain about how it works and how to protect themselves. Finally, personal data in Africa has not been well protected compared to Asian and European markets, even though POPIA was recently introduced in South Africa, one of the continent’s largest economies. This makes it easy for people with bad intentions to get hold of personal information,” she explains.
She argued that given that crypto is so new, crypto businesses have a significant role to play in teaching customers how to stay safe and protecting customers. Luno uses external blockchain monitoring companies and restricts crypto movements when the data indicates that customers are at risk.
“Interestingly, there is no specific demographic for victims, despite widely-held perceptions that scammers target either the ignorant elderly, or young mavericks looking to make a quick buck or previously disadvantaged users,” she added.
