Cryptocurrency is here to stay, but it has its disadvantages. Scammers find daily ways to fleece unsuspecting users. Techpression sheds light on techniques the bad guys use to scam money from some people’s crypto wallets.
One should be aware that the crypto market is filled with scams designed to defraud investors, often by exploiting the lure of high returns and the complexity of digital currencies. Protecting yourself means understanding common tactics and adopting strong security practices.
Ways to be on high alert:
Be wary of unrealistic offers: Scammers often promise guaranteed profits, huge returns, or opportunities that seem “too good to be true.” Remember that all investments carry risk, and no one can guarantee returns in the crypto market.
Thoroughly research projects and platforms: Before investing in any coin or using an exchange, investigate its whitepaper, roadmap, and the team behind it. Verify the team’s credentials and look for genuine community engagement. Be wary of projects with anonymous teams or vague documentation.
Secure your digital assets: Use strong, unique passwords and enable two-factor authentication (2FA) on all crypto accounts and exchanges.
Keep private keys and recovery phrases safe and never share them with anyone. Consider using hardware wallets to store significant amounts of crypto offline (cold storage).
Store sensitive wallet data carefully and avoid entering seed words on websites, especially if a browser extension requests them.
Be vigilant against phishing attacks: Carefully check URLs and be wary of suspicious links in emails, texts, or social media messages that request sensitive information. Avoid downloading unknown apps or files, as they could contain malware.
Ignore unsolicited advice and offers: Be sceptical of investment advice from strangers online, especially if it comes with pressure to act quickly or promises of “free money” or guaranteed returns.
Stay informed: Follow trusted crypto news sources and security platforms to stay updated on the latest scam tactics.
Tips on easily detectable scam red flags
Guaranteed high returns: No legitimate investment can promise high returns without risk.
Anonymous or unverified team: A lack of transparency about the project’s developers is a warning sign.
Phishing attempts: Suspicious links, spelling errors, or requests for private keys are indicators of phishing.
Pump and dump schemes: Artificial hype around a new token followed by a sudden price drop.
Fake apps/websites: Apps not found in official stores or websites with strange URLs, poor design, or suspicious permissions.
Romance scams: Online relationships are used to manipulate victims into investing in crypto schemes.
Note: If you suspect a scam has targeted you or have lost funds, immediately stop all transactions and report the incident to relevant authorities, such as the FBI’s Internet Crime Complaint Centre (IC3).