Ways To Avoid Becoming A Victim of Cryptocurrency Scams

Be Careful

The popularity of digital currencies is the reason why there are many fraudsters that strive to steal them.
According to a report by the Federal Trade Commission (FTC), the loss of investments worth $80m to scams have led people to be more  wary.

The following list are the kind of scams that are common within the digital currency world.

Phishing Scams:

A scammer can pose as a personnel of a cryptocurrency project to lure and convince you to give  out information concerning your crypto wallet ID and other information pertaining to your private key. This scam is one of the most common and can be done through emails phone calls and your social media accounts.

Social Media Giveaway Scams

This form of scam is the one that involve scammers who leverage on the trend of well known celebrities who talk about their digital currency investment on social media. What these guys do is they impersonate this Celebrities by creating fake accounts and doing giveaways of Crypto currency tokens in exchange for money.

Creation of Fake Apps and Websites

This scam involves a situation in which cyber criminals create or impersonate the identity of legitimate cryptocurrency apps or sites with the intention of luring you to login your information or give away your coins. They achieve this by creating a fake app that mirrors the genuine cryptocurrency site or app.
When you login your digital currency information on the site, it goes to their wallets especially when you trade with your coins on their app.

Cloning of Reputable Sites And Hardware Wallets

Fraudsters also clone wallets and known crypto sites such as exchanges with the hope that you’d be fooled into using their sites instead of the genuine ones.

This is why you should download wallets from the authorized sources and dealers. Not even hardware wallets are fool-proof since these fraudsters even make fake ones with the intention of stealing your coins.

Malware And Keyloggers

Also, it is possible for a fraudster to install malware that are keyloggers to steal your passwords.The solution to this is to make sure that you do not sure Windows OS that are known to be susceptible to such hacks.

Beware of Clipper Malware

What clipper malware does is to change the destination address that you copied (CTRL C) before you paste (CTRL V) to that of the hacker. Be sure that you cross-check your destination address before clicking the “send” button.

Besides the three scams mentioned above, there are several others like blackmail scams and investment scams to mention a few. The not so obvious one are Bitcoin Generators that steal your coins by giving you the impression that it has generated bitcoins for you.

The fraudster asks that you pay network fees to have the funds released. There are also doublers and other scams. Just bear in mind that any free digital currency bait is a scam. Some sites even waste your time by sending you to a site that redirects you to their affiliate sites.

As a digital asset investor, there are ways you can protect yourself from cyber identity thefts and cryptocurrency scams. The following are some guidelines you can adhere to.

  • Don’t share your private key information with anyone on/offline. Do not import them to any sites irrespective of what they promise.
  • Never send cryptocurrency to someone claiming to work for a government agency or business corporation .
  • When you have the option of enabling Multifactor Authentication on your device, please do so.
  •  You mustn’t be lured by promises of anyone claiming a giveaway when certain conditions regarding your digital currency token are met

Finally if you’re in doubt, you can do due diligence by running a background check on the website or apps relating to the cryptocurrency involved for any scam and review reports.

Author: Godwin Okon