Concerns Over Scams in the Expanding Crypto Space Prompt Calls for Improved Security Measures
The rise in cryptocurrency investments among Māori, Pasifika, and Indian communities has highlighted a growing concern: the gap between being “crypto-friendly” and being “scam-savvy.” According to Hays Niwa, a long-time advocate for Māori in the crypto space, many investors eager to participate lack the knowledge to recognize sophisticated scams that are increasingly targeting beginners. As the popularity of digital assets grows, so too does the risk of fraud, leaving many vulnerable to elaborate schemes.
“Unless we keep on working on designing safer, more secure technology for a rising tide of beginner investors (including Māori, Pasifika, and Indians), the risk of these investors falling prey to scams will only grow bigger as fraudsters become more and more sophisticated in their approach,” Niwa said.
Key Measures for Safer Crypto Investments
Niwa has outlined three crucial ways crypto companies can step up to protect novice investors and prevent further financial losses.
1. Prioritize Scam Awareness Among Investors
Niwa warns that scammers have become more creative and aggressive, often using phishing tactics, Ponzi schemes, or fake exchanges to exploit new investors. Unfortunately, many people are unaware of these threats, leading them into high-risk situations.
“Scammers are becoming more creative and aggressive in their tactics, often targeting beginner crypto investors with phishing, elaborate Ponzi schemes or as a fake exchange. Unfortunately, many people don’t have the experience to recognise these threats,” Niwa noted. She emphasized that it’s important for crypto companies to assume that customers may not be aware of these dangers and educate them regularly about the latest scams. This education should include publishing security tips such as enabling multi-factor authentication (MFA), using strong passwords, and recognizing phishing attempts. “This education shouldn’t just come from exchanges but should be embraced as an industry-wide standard by all investment platforms to protect investors across the board,” she added.
2. Simplify the User Experience (UX)
For many, the complex technicalities involved in securing digital assets can be intimidating. Long “seed phrases” used to protect wallets often discourage people from securing their crypto. According to Niwa, simplifying the user experience and making wallets easier to manage and recover is crucial for ensuring safety.
“It is vital that we simplify the user experience by making wallets easier to manage and recover (if you forget your password), removing the technical barriers that scare people off,” she said. Additionally, Niwa points out the importance of inclusivity, advocating for crypto information to be available in multiple languages to foster a more diverse investment environment. Easy Crypto, for example, recently became the first cryptocurrency platform to offer services in te reo Māori, a move aimed at empowering the Māori community with accessible crypto knowledge.
3. Leverage Advanced Technology for Fraud Protection
Niwa underscores the importance of combining advanced technology with strong regulatory compliance to combat fraud effectively. This involves verifying every customer’s identity to prevent fraudulent accounts and using automated systems to monitor for suspicious activity.
“Users should ‘expect’ this protection and make sure they’re getting it by doing their homework,” Niwa advised. With tools like behavioural analytics and transaction monitoring systems, crypto companies can flag unusual activity in real time, allowing for faster intervention when something goes wrong. Additionally, enforcing security measures such as transaction limits can prevent significant losses if an account is compromised.
Securing the Future of Crypto for Māori, Pasifika, and Indian Investors
As the popularity of cryptocurrency continues to grow within New Zealand’s Māori, Pasifika, and Indian communities, the need for safer platforms has never been more critical. By adopting a holistic approach that integrates education, simplified user experiences, and cutting-edge technology, Niwa believes the industry can protect investors from the risks that often accompany this rapidly evolving digital landscape.
“With the right combination of education, technology, and user experience, we can help protect New Zealand’s most avid crypto investors from unnecessary risks,” she concluded.
Niwa, a customer support professional at Easy Crypto, has dedicated her efforts to educating Māori on navigating Web3, even developing resources that teach children the basics of this burgeoning technology.