Stacey Wood, Molly Mason Jones Chair in Psychology and professor of psychology, discussed the rise of cryptocurrency scams in The Conversation, along with co-author Yaniv Hanoch, associate professor of risk management at the University of Southampton. Wood and Hanoch point out that many cryptocurrency scams combine similar techniques as other types of fraud—such as romance scams and Ponzi schemes—with the anonymity and lack of oversight that the cryptocurrency market provides duplicitous users: “Scammers are simply capitalizing on the anonymous nature of cryptocurrencies to hide their identities and evade consequences.”
To avoid cryptocurrency scams, Wood and Hanoch advise potential investors to do their due diligence. “As with all risky financial ventures, anyone considering buying cryptocurrency should follow the age-old advice to thoroughly research the offer,” they write. “Who is behind the offering? What is known about the company? Is a white paper, an informational document issued by a company outlining the features of its product, available?”
The piece was also published in The Telegraph and MarketWatch.