Digital, decentralized currencies, best known as cryptocurrencies, are rapidly growing in popularity. Unless you are well-versed in the complexities of crypto, it is difficult to wrap your head around it. Making wise decisions, and investments, in cryptocurrencies will require some additional knowledge in addition to the average financial market. As you may become more involved in this new digital monetary world, you should acknowledge the risks involved with these transactions. This article is not referring to the potential volatility of financial markets, but rather other risks that you may come across while introducing yourself into this new market. Scams are everywhere, both online and offline, and cryptocurrency exchanges are loaded with them. While exploring the cryptocurrency dynamic and looking into digital cryptocurrency options and exchange platforms, be vigilant of scams that may lead to losing your crypto investments.
Some Common Cryptocurrency Scams
- Fake Mobile Apps / Crypto investment platforms
One of the most common ways for scammers to fool an investor is by creating a cleverly crafted or spoofed application that can be easily downloaded from the mobile app store. Bitcoin is one of the most popular forms of cryptocurrency and is often used as a traditional payment method. Due to its popularity, Bitcoin prices have been skyrocketing in value. For those who cannot acquire Bitcoins through mining, which often requires several purpose-built hardware devices, look to other methods including deceiving investors into handing over their own.
- Scamming Emails
If you are involved with a legitimate cryptocurrency exchange company, you will often receive emails on good deals, trade opportunities, and general news in the cryptocurrency world. However, you should also be wary of these emails and be sure to verify the validity of these emails. You should be mindful of who sent it, whether the hyperlinks and images in the email do not contain tricky re-directs or malicious payloads. Scammers will often pose as these companies and try to deceive investors into divulging log-in information for trade sites, or even their digital wallets.
- Fake Social Media Updates
One of the easiest ways for scammers to get the attention of investors is from social media. Through cryptocurrency pages and websites that offer daily investing tips and information, scammers will meet investors both new and old. The scammers will often pose as experienced traders themselves, with spoofed exchanges and information. There are thousands of malicious players, and many, many more malicious bots. Do not trust offers that are spread through social media handles like Facebook or Twitter, especially if the offer is too good to be true.
Ways to Avoid crypto scams
- For businesses, understand that your employees will be the key targets of cryptocurrency scams, and they will often be targeted through link sharing through email or SMS. To overcome this, ensure to have a real-time URL scanner enabled to detect and block any suspicious links traversing your organization.
- For cryptocurrency companies and businesses that operate directly in the cryptocurrency industry. Scammers will impersonate your brand and may publish fake websites to fool your customers. Incorporate systems that can detect foul play such as fraud campaigns, brand impersonation, or implement email security methods, such as SPF, DKIM, and DMARC.
- For the general audience, practice safe web browsing. Report any suspicious-looking links, websites, and offers. It is important to remain vigilant and refrain from clicking links with lucrative offers. Utilize free URL scanners to check the URLs in real-time and become familiar with powerful ad-blockers and other browser protection tools.
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