What Are The Most Common Crypto Scams And How To Identify Them

Cryptocurrencies are the world’s digital future, and investing in crypto has many benefits for investors. Even virtual entertainment platforms like Woo Casino login accept cryptocurrencies for transactions. However, if you consider working with a crypto wallet, it is essential to understand cryptocurrencies have unique features making them way different from typical currencies. Digital wallets aren’t insured by any financial authorities and there are many scams around cryptocurrency investment: the number of them has skyrocketed over the recent years. To steal private keys to your digital wallet or entice you to send your money to them, fraudsters use several common cybercriminal tactics. To be safe and better protect your money, read about them in our article below. We will also provide you with some tips on how to spot and avoid crypto scams.

The Most Common Crypto Scam Tactics

Fraudsters are always on the lookout for new crypto scams, but there are some common tactics they use and everybody should vary. Remember: cryptocurrencies differ from the usual ones precisely by their decentralization. Even if you can report the danger, no organization can guarantee that your money will be returned in case of crypto fraud. It all depends on your knowledge and your decisions.

Many scammers use imposter scams: they pose themselves as reputable investment companies or celebrities and entice holders of crypto wallets to send them money. Sometimes they also pose as reputable recruiters (employment scams), but ask potential “jobseekers” to pay for the work training with cryptocurrency. Fraudsters who use the blackmailing or extortion tactic threaten the users to expose their private sexual photos or other compromising information and offer the exchange: of course, the victim of a blackmail scam must pay with crypto or reveal the private key. Other fraudsters offer users to invest money in crypto and send them links to fake websites. Such scams are similar to multi-level marketing frauds like Ponzi fraudulent scheme. Some scammers even specialize in making fake websites.

Unfortunately, using social media and public networks also makes you vulnerable to potential crypto scam attacks: they are prime grounds for crypto fraudsters. if you use a public network, some scammers use the so-called main-in-the-middle cyberattacks and try to access the sensitive information of the person, including information about your wallet. Crypto scams in social media, especially on dating sites are similar to the so-called “social engineering”: scammers try to gain the trust of users and then ask them for cryptocurrency transfers. Scammers also publish fake social media posts in social media. Giveaway scammers offer users to multiply their payments in cryptocurrencies. Scammers also use software update information (update scams) and try to get access to the copy of users’ SIM cards to hack the crypto account. Pump and dump scams, Initial Coin Offering (ICO)….there are numerous cybercriminal schemes they use.

How To Spot And Avoid Crypto Scams

Major red flags of crypto scams are urgent payment requests, random unsolicited contacts from unknown persons, and suspicious promises of huge payouts. To avoid scammers use VPN and public networks, never click hyperlinks and never open attachments from unknown senders and protect your private keys from anyone. It is also important to keep your bank and crypto accounts separate, and “exclusive” offers to check independently on official sites. And, of course, it is better to spend time researching to understand the cryptocurrency market, rather than blindly trust “experts” who insistently offer to get rich quickly and easily on cryptocurrency. If you are suspicious of any messages, senders, or links, always report them to the legal authority.