Cryptocurrency transactions are permanent, which means you can’t stop or reverse a transaction after you’ve sent cryptocurrency to a third party.
It would help if you were assured of the authenticity of any associated third-party services and merchants before sending bitcoin to a blockchain address and only transferring cryptocurrency to businesses you trust.
Due to the massive demand for cryptocurrencies and the rapidly changing landscape, there has been a surge in cryptocurrency-related frauds. As a result, investors must protect themselves against rogue crypto exchanges and tokens.
Experts advise that while researching digital bitcoin firms and startups, make sure they’re blockchain-powered, implying they monitor comprehensive transaction data. Check to see whether they have credible business ideas that address real-world issues. Companies should establish guidelines for digital currency liquidity and initial coin offerings (ICOs). The company should be operated by genuine individuals. If some of these requirements aren’t met by the startup you’re investigating, you should reassess your decision.
Most Common type of Scams
Technical Support and Impersonation Scams:
Scam customer care phone lines have been set up by fraudsters impersonating a range of firms in the banking, IT, retail, telecom, and service industries, including Coinbase. Scam phone numbers are widely disseminated on the internet, tempting naive victims looking for help. Fraudsters may also make outbound calls to potential victims. These con artists are experts at social engineering, deceiving and manipulating their victims into supplying personal information that would be utilized for fraudulent purposes by making false promises.
Even if you are following a good suggestion from someone with a lot of experience, you might still become a victim by accidentally accessing a bogus website. A surprising amount of websites have been created to look like legitimate startup firms. Think twice if there isn’t a little lock icon near the URL bar signifying security and the site address doesn’t begin with “https.”
Even though the site appears to be the same as the one you thought you were visiting, you may be sent to a different payment platform. For instance, suppose you click on a link that appears to be from a real website, but the attackers have crafted a phony URL with a zero instead of a ‘o’. Of course, that platform isn’t going to the bitcoin investment you’ve previously looked at. To avoid this, make sure you write the URL exactly as it appears in your browser. Also, double-check it.
Scammers are making use of social media to spread their giveaway schemes. They upload screenshots of fabricated company and management correspondence advertising a giveaway with links to bogus websites. Fake accounts will then reply to these postings, confirming the legitimacy of the hoax. After then, the bogus websites will urge you to “verify” your address by transferring bitcoin to the scam giveaway.
Fake Mobile Apps:
Scammers also use bogus applications accessible for download on Google Play and the Apple App Store to deceive bitcoin investors. Although stakeholders can immediately identify and delete bogus applications, this doesn’t imply that the apps aren’t influencing many businesses. According to Bitcoin News, tens of thousands of individuals have already downloaded fraudulent bitcoin apps.
While Android users are at a higher risk, every investor should be aware of the possibilities. Are there any glaring misspellings in the copy, including the app’s name? Is there an inauthentic appearance to the branding, such as odd color or an erroneous logo? Take notice of this and think twice about downloading.
These scammers encourage you to invest money to make bigger returns with little risk; they want you to recruit others to do the same. To make money, they frequently require a steady stream of new investors. Investment schemes such as Ponzi and pyramid schemes are excellent examples.
Come across one of these frauds in the United States. You can seek assistance from the Securities and Exchange Commission, the Federal Trade Commission, or your state’s securities authority. Contact the Financial Conduct Authority in the United Kingdom.
How can you protect yourself from crypto scams?
- Be skeptical of websites or services that promise unrealistically high profits or investment possibilities. It’s typically the case that something sounds too fantastic to be true.
- Don’t believe everything you’re told. Examine any claims made about investment, especially if they appear too good to be true or promise huge returns in a short period.
- Never grant remote access to your system to support employees (or anybody else for that matter). The fraudster now has complete control over your computer, online financial accounts, and digital existence.
- Whenever feasible, enable two-factor authentication on your cryptocurrency wallet and exchange. Be careful, however, that this is not a foolproof approach, as we witnessed when
- All freebies and offers discovered on social media should be taken with a grain of salt. Screenshots in reply messages should not be trusted since they might be falsified and manipulated.