For those who do not know, a cryptocurrency scam occurs when a criminal takes advantage of the rise of cryptocurrencies to defraud people into sending them cryptocurrency transactions.
They might achieve this by making a guarantee that your money will be returned twofold, by giving new users free crypto coins, or even just by requesting donations. Additionally, some scam artists may create phony social media pages or websites that appear to be connected to a trustworthy cryptocurrency.
If you are unfamiliar with cryptocurrencies and their transactions and would like to learn more, continue reading this post.
Typical Cryptocurrency Scams to Beware of
Every day, cryptocurrency scams cost victims millions of dollars. Fortunately, knowing how to recognize them can save you from losing your hard earned money to fraudsters.
Here are some frequent scams to beware of:
Fake Crypto Apps
This particular kind of cryptocurrency fraud takes the shape of counterfeit apps that claim to be associated with a certain kind of cryptocurrency. Actually, they are scam artists attempting to steal your funds or personal data. They might accomplish this by promising to quadruple your investment or by providing free coins in exchange for signing up.
Downloading crypto apps solely from reputable stores like the App Store or Google Play will help you stay away from these scams. In the event that it isn’t possible, be careful to check the app’s legitimacy before downloading it.
Phishing Scams
Another typical sort of crypto scam is phishing. With this one, someone tries to deceive you into disclosing your private details, such as your credit card number or login information. These scam artists frequently carry out their trickery by either creating a phony website that imitates the actual thing or sending emails that appear to be coming from a reliable source.
By being extremely cautious about the messages you read and the sites you visit, you can avoid falling victim to these frauds. Whether you are unsure whether a website is trustworthy, you can quickly check Google to discover if anyone else has reported it as a fraud. Additionally, you should never engage in links in email messages or texts that you get from unknown senders.
Digital Games & Collectibles
Giving out fake prizes is a type of social engineering tactic designed to get you to transfer money to fraudsters. A special kind of giveaway fraud involves digital games and collectibles, and these scams are frequently carried out on well-known social media platforms like Facebook and Twitter.
By offering to provide you with a digital game or item, such as an item for your preferred game or a rare YuGiOh card, the criminals of this giveaway scam want to deceive you into providing them with your funds or personal information.
How Can You Avoid Crypto Scams?
Scams using cryptocurrency are getting more sophisticated and persuasive, but there are methods to avoid falling for one.
Protect Your Crypto Wallet
You must be absolutely certain that your digital wallet was created by a respectable organization with a proven track record if you plan to purchase virtual currency and store them in a crypto wallet.
You should not share your wallet login information with anyone and stay away from using public wifi when using it. Activating two-factor authentication and password-protecting your devices are other requirements so that if someone gets a hold of your laptop or phone, they won’t have access to your wallet.
Additionally, using several wallets and even offline cold storage devices can be a good idea. In this manner, you won’t lose everything if there is a breach.
Ignore Cold Calls
It is probably a fraud if someone contacts you with a crypto investment opportunity out of the blue. Never divulge your personal details or send money to a company if they ask for it.
Avoid Social Media Endorsements
Scammers frequently promote fake crypto investment possibilities on social media. Some also ‘endorse’ their company and their investment by using pictures of famous persons and high-profile individuals, frequently without their permission.
Additionally, avoid following advice from famous individuals, people you do not know well, or who do not have a strong financial background via social media or online forums.
What to Do if You Get Scammed?
Reporting fraud to the platforms that scammers use is a smart option. For instance, if you notice a fraudster posing as Binance, the exchange needs to be informed. Inform Facebook if someone is promoting bogus giveaways there.
Maintaining data security and keeping your eyes open are the keys to avoiding crypto-related fraud, as with any scam. Keep in mind that no reputable business will approach you and demand payment, and you shouldn’t send cash to just anyone.
An investment offer is definitely a scam if it sounds too good to be true. Additionally, it is a scam if someone asks you to pay with cryptocurrency, gift cards, or wire transfers. Report them, and disregard any additional messages.
Additionally, you can get in touch with chargeback companies like Global Fraud Protection if you have been the victim of fraud. You can report crypto scams to Global Fraud Protection and they can assist you in getting your hard-earned money back as well.
