Crypto Scams – Types & Tips To Survive

Crypto Scams – Types & Tips To Survive

Crypto trading does not prove to be fruitful for everyone. Sometimes, transacting in these digital currencies, such as Bitcoin – the most valuable cryptocurrency tradable via  Bitcoin Era Software and Ethereum can be scary for beginners. 

These are the number of scams that make crypto trading worrisome and have the potential to make the entire crypto universe numb. While some of these scams are easy to understand and transparent, others are most complicated and sometimes harder to track and trace. In recent years, these digital scams have emerged to the extent that they have become more widespread and determined in nature. Crypto scammers have been continually striving to make their tricks and techniques better to trap innocent or new crypto users into their scams.

Types Of Crypto Scams

  1. Telegram Scan

You can consider Telegram as the favorite refuge of crypto scammers as they are using this platform to promote every kind of scam. From job opportunity scams to donations or gift scams, Telegram directly links the scammers to their victims. Tech support scam is the most influential Telegram-based scam that came to target crypto exchange users.

  1. Impersonation Scam

There also exist some cases where scammers have reached the less tech-savvy individuals that want to join the trading community of cryptocurrencies offering to help them open an account with liquid. The scammers first get Know Your Customer documents from their victims to authenticate or validate the account. 

After the account is opened, these victims deposit their savings into their newly opened liquid accounts. Scammers may have retained complete access to these accounts, or they can use the alternative of Know Your Customer documents to regain access. They will drain their victims’ accounts by converting their funds into more liquid digital currencies like Bitcoin to transfer them into their own accounts.

  1. Employment Scam

In these scams, the fraudsters use Telegram to impersonate hirers and CEOs with fake job listings for crypto firms such as Liquid. These fraudsters ask the job seekers to deposit cryptocurrencies, and in return, they promise to provide them training and job-related data. Sometimes scammers demand job seekers to take part in the transmission of crypto-assets in an arrangement that could result in illicit Money Laundering.

  1. Phishing Scam

Phishing scams are older scams and do not belong only to the crypto world. Threat actors utilize phishing tools to access the bank accounts, e-mails, and other locked accounts of victims. Although these attacks can be seen in any form, the ultimate goal of phishing frauds is to trap the victims to get their sensitive data along with their login details. In the case of crypto, these attacks are used to access your crypto accounts and crypto wallet.

Another technique phishing attacks utilize is to trap the victim by forcing them to visit a website that seems to be a fair service. The service may be an ad for crypto exchange, crypto wallet, or any other crypto-related service in which the victim uses a password and other details for logging in. These websites contain domain addresses that resemble the official website address. This is how the victims try to access the official website and get tricked by a bogus website.

Tips To Survive Crypto Scams

  1. The first and foremost thing you can do in this regard is to do your homework and research to get to know the ins & outs of crypto.
  2. Be careful about trusting someone and do not follow someone else’s advice until and unless they are trustworthy and financially sound.
  3. Do not transfer your crypto holding to unknown or suspicious addresses.
  4. Stop yourself from sending cryptocurrencies under the lame excuse of verifying an address for a promised gift.
  5. Circulation of screenshots on social media platforms showing bogus benefits is common nowadays. These are the tricks of scammers to make you their next victim; avoid them.
  6. Ensure the safety and security of your crypto wallet by 2FA (Two-Factor Authentication). And never share your login details with anyone.
  7. Do not fall for the websites that promise unrealistic profits. These are scams!
  8. There may exist grammatical or spelling mistakes when these scammers try to communicate with you; watch out for this.
  9. Avoid employment offers and bogus giveaways on Telegram.
  10. Try not to be tricked by phishing techniques and keep a close eye on the URL of websites.

About the author

Johnny is dedicated to providing useful information on commonly asked questions on the internet. He is thankful for your support ♥

Leave a Comment