Cryptocurrency has reached a point where hackers and scammers are now aware of the profits they can get from cheating others out of their hard-earned money.
Investors in the digital currency can keep an eye out for these 4 common cryptocurrency scams circulating about the world wide web:
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Investment Scams
It may be difficult to spot a real cryptocurrency investment from a fake one, but there are telling signs to help you identify which is a scam.
If they are promising ‘untold riches’ without talking about the risks involved, then there’s a high chance that they’re aiming to steal your money. When they also set an unrealistic figure, such as you making $1,678 a day then you may not want to sign up because it’s most likely a fake.
These scams serve to hook in unsuspecting individuals who want to get in on the crypto bandwagon. The golden rule to follow is this- if it sounds too good to be true, it probably is.
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Fake Giveaways
Fake promotions can come anywhere- as a pop-up advertisement, sent to your email or as a message in a forum or a message sent through social media.
While it’s true that there are real promotions and deals that let you earn crypto tokens for free, the singular difference between them is the promised amount. Also, there comes a point in time when the scammer will try to acquire your crypto account information or digital wallet, which should be enough to tell you that you’re dealing with a fake.
Phishing Attempts
Phishing is one of the oldest scams in the book, and it’s used widely not just in the cryptocurrency niche but in the banking, stocks and even online gaming scene.
The scammer’s objective will be to try and steal valuable information from you. This can be done many different ways, from sob stories to inducing a sense of urgency. They will then try to glean your data, such as crypto account or wallet username and password. Once you hand over the details then it’s usually game over.
Impersonating a Trader or Company
Impersonators can don the guise of someone who’s trying to help but in the end will steal the money you deposit in crypto exchange platforms.
In another scenario, you may receive an in-platform message from someone who says your crypto account is compromised. Then, they will usually ask for your account credentials and transfer the crypto somewhere else.
As with all legitimate companies, employees or even the CEO won’t (and shouldn’t) ask you for your password. The moment they do, exit the conversation or delete the email and change your account password.
Cryptocurrency comes with its own pros and cons, and every wise investor should know when he or she is being conned out of their money. Steer clear of ‘get rich quick’ schemes and individuals promising unrealistic profits and you’ll have protected yourself from a possible scam.
