As Cryptocurrency continues to thrive, and more people invest, the risk of scams increases. It doesn’t really matter how safe any form of currency is; fraudsters and scammers will deceive and use many different tactics so that they can steal from people. Just like any market, investments in crypto can get exciting, and this can lead to people dropping their guard because they think they’re onto something good. So it’s paramount that you understand the warning signs of different types crypto scams and how to avoid them.
Crypto Phishing Scams
The aim of any form of fishing is to steal data so that it can be used in malicious ways. For example, getting login details, recovery seeds, or private keys to be able to log in and commit fraud. Phishing normally takes place on social media or via email and uses links that are malicious to direct unsuspecting users to apps and websites that will collect their data. The advice is always to avoid clicking on any links and use the website directly if you want to verify the information. Customers of OpenSea, Ledger and Coinbase have all been targeted by phishing.
Crypto Social Engineering Scams
In a social engineering scam, fraudsters are looking to steal information by illicitly accessing sources that should be confidential. This is a trickster-type scam where they manipulate people into giving access to their crypto accounts or wallets by conning them into downloading what is essentially malware onto the computer. As a user, it’s a case of remembering that if something sounds too good to be true, it probably is. Unsolicited attention promising the Earth is unlikely to be real. Giving away free media downloads or masquerading as a public figure we should be able to trust like an officer of the law are all methods used by these confidence tricksters.
Crypto Seasoned Investor Scams
Investor scams are so common both in the traditional markets and the crypto markets. Generally, they pray on the inexperienced and pretend to be seasoned investors looking to help new people get started. They talk the talk and promise very high returns on your investments. Part of the scheme is to get you to transfer money to them. It will look very legitimate, perhaps a pyramid scheme or a fake ICO, but it’s often just a way to access your money. It’s vital that before any investment of any kind you contact us so that we can conduct the necessary due diligence on your behalf.
Fake Crypto Wallet Scams
E-wallets are a necessary part of crypto currency transactions, and in the same way that we know PayPal and Skrill are legitimate online wallets, it’s important that you only use well-known cryptocurrency wallets to avoid scammers. Creating wallets and fake exchanges is another way that people fall for criminal activity. A legitimate and convincing wallet is created, and as soon as you transfer any money, it will disappear. It’s is therefore essential that you are careful and thorough in verifying the authenticity of your wallets and exchanges before letting go of any of your coins.
