HOW TO AVOID CRYPTO SCAM
As cryptocurrencies grow in popularity, so too do the opportunities for bad actors to exploit every loophole in the crypto space and scam unsuspecting people. In 2020, cryptocurrency scammers stole over $7.8 billion from him, and in 2021 that number has doubled for him. New types of cryptocurrency scams are popping up every day and you can become a victim if you’re not careful. In cryptocurrency scams, criminals steal money from people who actively invest in and trade new digital currencies. Bitcoin scam recovery is possible by tracing the fraudulent account details and money transferring details
HOW CRYPTO CURRENCY SCAM WORK
Most crypto assets are not regulated or tracked by governments, making it very difficult to recover lost funds from cryptocurrency scammers. And that’s why they fearlessly scam unsuspecting people. Ultimately, it is the end-user’s responsibility to protect the assets.
Cryptocurrency scams mainly fall into the following categories: Gaining access to someone’s wallet: This includes scams in which criminals gain access to the target person’s digital wallet or account credentials. Scammers try to access personal information such as security her code//private keys, or try to access physical hardware.
Directly transfer or steal cryptocurrency: In these scams, criminals transfer cryptocurrency directly from the targeted wallet to their own through impersonation, business opportunity spoofing, or other malicious means. Wire transfer fraud recovery is difficult but possible by collecting the bank details.
fake website: New cryptocurrency users may be directed to her fake website, which promotes “big” cryptocurrency investment opportunities and mining. Many of these sites look authentic, so you can be confident that your investment will grow.
Investing may be easy, but the chances of getting your winnings back are almost impossible as scammers take all the money and shut down the site once they have collected enough money. In many cases, the scammer can also target unsuspecting customers by posing as a company.
Fake Mobile Apps:Fake mobile apps have also become a very popular method for scammers to trick cryptocurrency users. The purpose of these mobile apps is to trick people into believing that they are using the original mobile app, allowing the crooks to access the user’s digital wallet details. For example, Poloniex, a popular cryptocurrency exchange app, fell victim to scammers when a fake app with a similar name and interface appeared on Google Play. The company reported a fake app, but by the time it was eventually removed, over 10,000 users had already downloaded the app, potentially compromising their accounts.
Email Scam: Emails can also be disguised as if they were sent from a trusted and legitimate source in order to lure people in. Most of these emails are asking for “urgent” cryptocurrency payments. . The idea is to convey a sense of urgency so that users can quickly reply to emails without thinking too much.
With the proliferation of new crypto-based investments such as non-fungible tokens (NFTs) and initial coin offerings (ICOs), scammers have more ways than ever to get their money. For example, scammers can send emails pretending to be legitimate cryptocurrency companies offering limited-time offers. In other cases, the founders of new cryptocurrencies may issue tokens themselves that are not yet regulated or mislead investors with false advertisements about their products.
TIPS TO AVOID CRYPTO CURRENCY SCAM
Cryptocurrency scams may be on the rise, but you can take precautions to avoid getting caught up in them. Here are some of the ways to prevent cryptocurrency scams. Secure your digital wallet: To invest or trade in cryptocurrencies such as Bitcoin, you need a digital wallet and a private key to access the wallet.
If a website or company insists on sharing your private key, it’s definitely a scam and you should stay away as much as possible. Do not share your digital wallet private key with anyone.Ignore cold emails: When you suddenly get contacted about an “amazing” cryptocurrency investment opportunity, it’s too good to believe it’s real. Do not provide personal information or log in to digital wallets through suspicious links in emails as most of them are scams.
If a company is trying to pressure you to invest in a “limited time” offer, do your research to avoid any urgency. There are also several instances of scammers offering discounts and bonuses to trick people into investing immediately. Take the time to do proper research before investing money instead of trying to do it all at once.Stay away from social media and Google ads: The scammer is targeting cryptocurrency enthusiasts using ads on social media and even his Google searches. In 2021, bad actors will buy Google Ads placements on fake websites masquerading as popular cryptocurrency wallets targeting people, and scammers can steal $500,000 worth of cryptocurrency.