Scams occur on the internet, and cryptocurrencies are no exception. Crypto can be a rewarding activity if you know what you’re doing. It’s plagued with scammers, just like any other online platform. The more you learn about the new digital monetary systems known as cryptocurrencies, the more obvious it seems that some of these transactions are fraught with risk.
You should be informed of the risks of losing your cryptocurrency investments and market volatility. When researching digital cryptocurrency companies and entrepreneurs, experts advise confirming that they are blockchain-based, which means they monitor extensive transaction data.
Examine to see if they have credible business plans that address real-world issues. Genuine people should run the company. It also specifies their digital currency liquidity and initial coin offering (ICO) restrictions. If the start-up you’re researching lacks these elements, you should reconsider your approach. Here’s a deep look at what could be the possible crypto scams and how to resist becoming a target of it when you explore the world of cryptocurrency.
- Imposter Websites:
Sometimes you can be a victim of a fake website. There have been a large number of websites that are circulating on the internet. These websites resemble the original and valid start-up companies.
If you happen to come across such a website, make sure you check the small lock icon indicating security near the URL bar and have no “https” in the site address, then think twice before engaging in any activity on that site. These sites sometimes look identical to the ones you’re already visiting, but you can still become a victim as these sites may direct you to another platform for payments.
For instance, you click on a legitimate link, but the hackers have created a fake URL by putting a 0″ zero” instead of a letter. Such a platform wouldn’t take you to the cryptocurrency investment you’ve researched. To avoid this, make sure you double-check the URLs before making payments.
- Fake Mobile Apps:
Fake mobile apps are also a common way of scamming cryptocurrency investors. They make fake apps available to download through the apple store or Google play. The stockholders can surely get these apps removed, but their impact doesn’t go away because thousands of people have fallen victim to these cryptocurrency apps.
Fake mobile apps are a greater risk for Android users. The users should always examine the app and research before actually downloading it. Check the reviews and ratings of the app. Makes sure the branding looks authentic, and the logo is correct. If there is any problem with it, then reconsider downloading it..
- Phishing Scams:
The phishing scammers usually go after email or banking login information, but crypto phishing scams go after your keys to your crypto wallet. These can sometimes be labeled as “technical support scams” .that is because most of the time, the person running the scam will pose it as tech support to try getting information from you.
They can even go as far to let representatives from fake companies or imposters claiming to be from a legitimate company call you to offer help managing your crypto. Never give any unsolicited contact your crypto login credentials or other sensitive information, no matter how convincing they might be. If they claim to be from a legitimate company, double-check the information they provide—Bitcoin Era, for instance, advices its user to only accept calls from legitimate companies.
- Giveaway Scams:
Sometimes celebrities’ often talk about crypto on their accounts which can tip any scammer into organizing a fake giveaway using the names. And can get multiple bots and other accounts to interact with the giveaway to make it sound natural. Such scams can include screenshots that are designed to make the giveaway seem real.
These screenshots can contain a QR code to a website where the people can be redirected to verify their crypto wallets. Even if you get a message from any social media site asking for crypto, ignore it. Legitimate companies will never contact you unsolicited demanding payments.
Guide to avoid scams:
Scams occurring in cryptocurrency can be trickier to identify than other scams because of the advanced technology and terminology that most people are unfamiliar with. That’s why fraudsters use victims’ lack of knowledge to their benefit. Most of the time, such scams add an added sense of pressure on losing the opportunity; however, in orders to avoid such scams, follow a few of the following rules:
- Don’t share your private keys or seed phrases with anyone.
- Never share your cryptocurrency with people claiming to be government, agency, or large corporation workers
- If you get the option of multi-factor authentication, then utilize it.
- Avoid engaging in any giveaways or free goodies from strangers.
Cryptocurrency scams are getting more significant day by day. The scammers utilize people’s lack of knowledge about digital currency to harmful use. That is why everyone must be the most careful about their crypto credentials. To safeguard your information, look into an identity theft protection service that can alert you if your information is being wrongly used.