How to Protect Yourself From Crypto Scams

Source — comparitech.com

How do crypto scams work?

Step 1: The scammer attempts to join a well-known cryptocurrency community

Step 2: The scammer tries to acquire cryptocurrencies.

Step 3: The scammer shares forged documents.

Step 4: Fraudsters attempt trickery to gain access to cryptocurrency.

Step 5: During the transaction, the scammer takes personal information.

Best practices to avoid crypto scams

  1. Being aware of the most frequent crypto scams
  • False cryptocurrency giveaways — Crypto giveaway scams are internet posts, mainly on social media, that ask users to deposit cryptocurrency to an address in exchange to guarantee that the sender will earn double or more in return. This type of crypto scam has been present since the 2017 initial coin offering (ICO) craze, and it follows a fairly strict formula. Fake cryptocurrency giveaway scams are easy to recognize if one knows what to look for.
  • Scams via trading bots — Another common crypto scam is fake trading bot websites. These are platforms that guarantee users monthly returns that are extraordinarily high. These websites function like a Ponzi scheme, in which new money invested in the scam is utilized to pay out existing investors.
  • Phishing attacks — Phishing attacks are getting more difficult to spot as fraudsters take more outstanding care in crafting emails that appear to come from respectable firms. Many will persuade users to click on links that infect the device with malware, granting the attacker complete access to the data saved on it.

Conclusion

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