Scammers are constantly seeking new methods to steal your money, and the recent explosive rise of cryptocurrencies has made fraud more common. Every day, new varieties of cryptocurrency scams emerge, and if you’re not vigilant, you can find yourself falling for one of them.
Contents Included
- Most Common Cryptocurrency Scam
- Keep an Eye on these Scams
- Secure yourself from scams
- If you got trapped in a Scam
- Final Word
1. Most Common Cryptocurrency Scams
- Fake Websites
New cryptocurrency users may be drawn to fraudulent websites that promote “huge” investment possibilities or cryptocurrency mining. Many of these websites have authentic-looking design elements that might persuade you that your investment will increase.
Although the investment may be simple, your prospects of recovering your gains are slim since con artists steal all the money and shut down the website as soon as they have amassed enough.
Scammers frequently imitate companies and build websites that closely resemble the actual ones in order to target unwary clients.
- Phishing Scams
Online wallet information is a common target of cryptocurrency phishing schemes. Private keys for crypto wallets, which are needed to access the wallet’s funds, are the target of scammers.
They operate in a similar way to previous phishing scams and are associated with the fictitious websites mentioned above. To entice users to a specifically designed website where they are asked to provide private key information, they send an email.
The bitcoin in those wallets is then stolen by the hackers once they know this information.
- Fake Apps
Scammers are increasingly using fake smartphone apps to deceive bitcoin users. These mobile applications are designed to deceive users into believing they are using the real mobile app so that criminals may steal their digital wallet information.
For instance, when a phoney software with a similar name and user experience appeared on Google Play, scammers targeted Poloniex, a well-known crypto-asset exchange app.
The fraudulent programme was reported by the firm, but by the time it was eventually removed, over 10,000 customers had already downloaded it and perhaps risked the security of their accounts.
- Email Scams
In an effort to deceive individuals, emails can also be faked to appear as though they came from a reliable and trustworthy source. The majority of these emails demand cryptocurrency payments be made in a “urgent” manner.
The goal is to create a sense of urgency in the email so that the recipient responds to it without giving it much consideration.
- Cloud Mining Scams
Cloud mining refers to businesses that let you rent mining equipment they run in return for a set charge and a percentage of the profits you will allegedly make. Theoretically, this enables anyone to mine remotely without investing in costly mining hardware. In contrast, a lot of cloud mining businesses are frauds or, at best, unproductive, causing you to lose money or make less than expected.
- Marketplace Scams
When clients are requested to contribute bitcoin for a product they are purchasing through an online marketplace, this is known as a “marketplace fraud.”
To make it simpler for bitcoin aficionados to buy things, several eCommerce companies now accept cryptocurrency as a means of payment. The websites that promise to take cryptocurrencies may not all be legitimate, though.
Scammers might create phoney seller accounts or entire fraudulent websites to entice unwary buyers to make bitcoin purchases. After receiving orders, the con artists either totally shut down the website or start selling fake goods.
2. Keep an Eye on these Scams
- Guaranteed returns
Because investments can go down as well as up, no financial investment can guarantee future returns. Any crypto deal that guarantees you will make money is a red sign
- A bad or quasi whitepaper
A bad or non-existent whitepaper: Every cryptocurrency should have a whitepaper since it is one of the most important parts of an ICO. The whitepaper should describe how the cryptocurrency was created and how it will function. If the whitepaper doesn’t make sense – or worse, doesn’t exist – proceed with caution.
- Excessive Advertising
Every firm promotes itself. Crypto scammers, on the other hand, entice individuals by investing heavily in marketing – internet advertising, paid influencers, offline promotion, and so on. This is intended to reach as many individuals as possible in the shortest amount of time – to generate money quickly. If the marketing for a crypto product appears heavy-handed or makes grandiose promises without supporting evidence, halt and conduct more investigation.
3. Secure Yourself from Scams
Many cryptocurrency scams are sophisticated and convincing. Here are some precautions you may take to safeguard yourself.
- Protect your Wallet
A wallet containing private keys is required to invest in bitcoin. If a company wants you to provide your keys in order to join in an investment opportunity, it’s most certainly a fraud. Keep your wallet keys to yourself.
- Invest in secured options
If a corporation tries to encourage you to invest in a ‘limited-time’ deal, resist the temptation and conduct your homework. Scammers have also offered discounts or incentives in order to induce customers to contribute immediately away in some circumstances. Instead of jumping all in all at once, take the time to fully investigate before investing any of your money.
- Ignore cold emails and calls
It’s a fraud if someone reaches you out of the blue to pitch you a crypto investment opportunity. Never give out personal information or provide money to anyone who contacts you in this manner.
- Download trusted apps
Although phoney programmes might find up in the Google Play Store or the Apple App Store, downloading apps from these sites is safer than elsewhere.
4. If you got trapped in a Scam
A bitcoin fraud may be catastrophic, so if you have made a payment or provided personal information, you must act promptly.
Crypto fraudsters frequently sell the information they have obtained to other criminals. To avoid future harm, it’s critical to update your accounts and passwords everywhere. If you are a victim of a social media cryptocurrency scam, you can report it to the appropriate social media network.
5. Final Word
Scammers are constantly seeking new ways to steal your money, and the rise of cryptocurrencies has made fraud more common. Every day, new varieties of cryptocurrency scams emerge, and if you’re not vigilant, you can find yourself falling for one of them. Scammers are increasingly using fake smartphone apps to deceive bitcoin users. Cloud mining is supposed to enable anyone to mine bitcoin remotely. A lot of cloud mining businesses are frauds or, at best, unproductives.
