5 common cryptocurrency scams you need to avoid
One of the challenges it faces is that of hacking. To make matters worse, one can be hacked for their assets. The hacker is a lot of times not tracked down because they accept anonymity. This has therefore encouraged crime.
Bitcoin and Ethereum are the top cryptocurrencies currently being traded and their value continues to rise, making them a target for hackers. This has made transacting with cryptocurrencies a bit scary for newbies.
Recent happenings in the industry have shown that some cryptocurrency scams are simple and obvious, while others are more complex and sometimes difficult to avoid.
Cryptocurrency scams have evolved to a point where they have become more elaborate and ambitious in scope. As exchangers are news means of securing their wallets or their respective customers, bad actors continue to improve their techniques to trick innocent cryptocurrency users into falling for these scams.
Therefore, I will highlight some of the most common cryptocurrency scams that you should avoid. The article will also mention some valuable tips to ensure proper cyber hygiene and keep scammers at bay.
Social media, Telegram, has become the breeding ground for cryptocurrency scammers. Here, the scammers have tried to promote almost all types of scams. The scams range from employment to giveaways. In this way, they contact their victims directly and discreetly.
Technical support is one of the most popular Telegram scams that target crypto exchange users. The scammers do this by posing as major crypto exchanges such as Liquid, Coinabse, eToro, etc. and offering to help users fix account issues or improve their account security. Once the user reveals their account credentials or transfers cryptocurrency to a wallet address for “payment”, they delete the person’s account.
For this reason, you must never give your credentials to anyone. If you have any issues with your account, email your exchange’s support center.
This is the second type of scam that is gradually on the rise. Scammers accomplish their goal by approaching less tech-savvy individuals interested in cryptocurrency trading with an offer to help open an account.
The scammers set out to obtain KYC documents from their victims to complete account verification. After opening the account, victims immediately deposit their money into it, believing they already have a cryptocurrency investment.
Since these scammers have retained full access to their victims’ accounts, they can use the KYC documents to regain access. Therefore, it is easy for them to go ahead and drain the funds from the victims’ accounts. They then exchange them for cryptocurrencies like Bitcoin to transfer to their wallets.
Are you a fan of giveaways? Then this is just the thing for you. You must know that nothing is free in Freetown. Here, the scammer usually promises free cryptocurrency as part of a supposed giveaway. Once a user signals interest, the scammer asks the user to verify their wallet address by sending some cryptocurrency to a wallet address they provide.
Facebook and Twitter are home to giveaway scams. They spread like wildfire on these social media channels.
To start their bad move, scammers with fake accounts pose as the Twitter and other social media handles of celebrities, prominent personalities, or popular crypto companies. They go even further and use fake accounts to comment on the official Twitter and Facebook pages of companies and personalities to reach their followers. In this way, they avoid suspicion.
If they are successful, they even hack into legitimate social media accounts to perpetrate the giveaway scams.
Earlier this year, a hacker managed to hack into the Twitter accounts of Joe Biden, Elon Musk, Kim Kardashian and many other prominent personalities and companies. After the hack, the scammer compromised Twitter handles and tweeted the link to the cryptocurrency wallet used for the giveaway scam, eventually collecting at least $110,000 worth of Bitcoin before the tweets were removed.
Despite the crackdown on scam posts and fake accounts from social media companies, scammers have continued to develop new techniques to promote their giveaways.
Scammers are using this to pose as recruiters and executives with fake job postings for crypto companies. In exchange for the job position that never exists, the scammers then demand cryptocurrencies from eager job seekers in exchange for training or work-related materials.
They have even used this means of using job seekers as a conduit for crypto assets. These are arrangements that may be designed to facilitate illegal money laundering.
Scammers use phishing techniques to access people’s online bank accounts, email accounts, and other password-protected accounts.
That’s why it’s important to use different passwords for all your accounts. If they have access to your account, the goal is to get sensitive data and destroy your crypto assets.
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Nothing on Cryptinus constitutes professional and/or financial advice. Always think for yourself and make sound decisions when investing. Never invest money that you can’t afford to lose.