How to Stay Away from Cryptocurrency Scams

Cryptocurrency is one of the hottest subjects these days.

These cryptocurrencies let us execute lightning-fast international transactions, build decentralized applications, securely and effectively encrypt information, and, most importantly, present us with a revolutionary new way to develop our wealth.

While the cryptocurrency craze has generated many opportunities, it has also resulted in many cryptocurrency scams. This new digital, decentralized money frontier might be a minefield for unskilled investors.

Many fraudsters are aware of this and seek to take advantage of those just starting in the complicated world of cryptocurrencies.

Avoiding cryptocurrency scams

Cryptocurrency is well-known as the currency of the future and numerous scams associated with it. Scammers utilize various techniques to defraud you of your crypto and money.

While some approaches are unique and novel, others are simply updated copies of previous methods. Therefore, it is critical to look for cryptocurrency scams, irrespective of who you are.

While knowing crypto scams is necessary, so is knowing fund recovery firms. These firms are experts in dealing with cryptocurrency scams.

In addition, they have fund recovery agents who have experience in scam situations and know the critical approaches to take to get the desired outcome.

Below are some cryptocurrency scams and possible ways of avoiding them:

1. Impersonation Scam

There are many customer support numbers on the internet for people seeking assistance. When you call these numbers up, the chances are that your call may get diverted to the scammer instead of the customer support.

Sometimes the scammer himself calls you up, asking if you require assistance. These fraudsters are trained in social and people skills.

They lure you into providing your details without even suspecting them and using this information for fraud.

Avoiding Tip

Never give up your personal information or even remote access to your computer to anyone, whether it’s a customer service representative or a broker.

For example, do not agree to help if you receive a call from someone asking for your permission to help you. Also, do not transmit any of your cryptocurrency to the support team.

Finally, remember that no broker will ask for your crypto coins, and no customer service representative will ask for access to your computer, crypto account, or wallet.

2. Giveaway Scam

This giveaway scam is a popular crypto scam. Fraudsters are making use of social media to spread their giveaway schemes.

They post fake company logos and executive communications offering a giveaway with links to fake websites. Fake accounts will then reply to these posts, confirming the legitimacy of the hoax.

And when you fall for these bogus claims, these websites will ask you to “verify” your address by transferring cryptocurrency to the scam giveaway.

Avoiding Tip

The first and foremost thing to memorize is that “never send your cryptocurrency to giveaways for verification purposes.”  Be cautious of giveaways on social media. They are never accurate. And know that screenshots and images can be altered.

3. Investment Scam

This type of fraud involves receiving a call from a scammer who asks you to invest money in his app or website to make huge returns with no financial risk.

They also ask you to bring other people in to get paid a commission for bringing them up.

They then ask you to wait for a set amount of time to receive your greater rewards, only for you to discover later that you have been duped and that the crooks have taken your money.

Avoiding Tip

Be wary of websites or services that promise unrealistically high profits or investment opportunities. Almost all of these offers are too good to be true.

Send cryptocurrencies only to people you know and believe in. Look for publically verified reviews or news regarding the receiver. Investigate the company thoroughly. Verify validity by visiting consumer-protection websites, such as Commodity Futures Trading Commission (CFTC).

4. Extortion Scam

Another common cryptocurrency scam is the extortion scam. Scammers may call, claiming to have embarrassing information about you and threatening to reveal it unless you provide payments in crypto.

To make things extra scarier, they might show you material they got their hands over through a data breach.

Avoiding Tip

If you ever become a victim of an extortion scam, report the fraud immediately. If you recognize the material, be it a password, change it directly.

5. Employment scam

Scammers may not persuade you to pay them cryptocurrency; instead, they may offer you a job managing all of the cryptocurrency exchanges.

These fraudsters create bogus job offers on job sites and either need you to pay registration fees in cryptocurrency or offer you a position that requires you to convert cash to bitcoin for their benefit.

Avoiding Tip

Employers will never ask you to pay any fees for registration, especially in cryptocurrencies. Therefore, such job offers should be avoided. Also, always do your homework on a firm before agreeing to their conditions.

Conclusion

As cryptocurrency’s popularity grows, so does the frequency of cryptocurrency scams. Therefore, the easiest way to protect yourself is to be aware of scams. To begin, educate yourself on the many types of fraud now prevalent. Then, it will be easier for you to recognize them when they come in new forms. Also, when dealing with or investing in cryptocurrencies, use extreme caution.

Read Also:

• What You Need To Know About How Cryptocurrencies Work
• Top 5 Crypto Funds You Should Definitely Follow to in 2022
• Litecoin Vs Ethereum – Which Is A Better Cryptocurrency For Investment?