Fraudsters are always looking for new opportunities to steal money, and the recent explosive growth of cryptocurrencies has made fraud more common. According to the blockchain intelligence company report, thieves stole $14 billion worth of cryptocurrency in 2021, setting a new record for crime related to crypto. Awareness of the risks is crucial if you’re interested in cryptocurrencies, especially when frequently using online betting platforms such as VulkanVegas casinos. Though the users are given full protection against the scammers, the fraudsters come with new methods to take advantage of the users.
Scams Using Cryptocurrency Investments
Cryptocurrency scams are of various types. Among the most typical are:
Fraudulent Websites
Scammers may create fake cryptocurrency trading websites or knockoffs of authentic cryptocurrency wallets in order to trick their victims. Often, the domain names of these false websites resemble those of the real websites they are designed to emulate. They resemble legitimate websites so much that it can be difficult to tell them apart. When a website is a fraudulent cryptocurrency, one of two things occur:
- Your password for your cryptocurrency wallet, your recovery phrase, and any other financial data you enter are all stolen by scammers, just like with phishing pages.
- Take theft as an example: At the beginning, you might only be able to use the website to withdraw a modest amount of cash. As your present investments seem to be going well, you can decide to expand your investment in the website. When you later want to withdraw your money, the location either closes down or denies your request.
Misleading Apps
To trick cryptocurrency consumers, criminals commonly employ fake apps that can be downloaded from Google Play and Apple App Store. These bogus apps are quickly discovered and removed, but that doesn’t mean they aren’t having an impact on numerous financial outcomes. Many people have downloaded fake cryptocurrency apps.
Fraudulent Endorsements by Celebrities
To entice potential targets, cryptocurrency scammers occasionally adopt celebrity, corporate, or influencer personas or make claims about endorsements from these individuals. This occasionally entails fake marketing cryptocurrency to unsophisticated investors. Sophisticated websites and pamphlets that purport to have celebrity endorsements from well-known figures like Elon Musk are sometimes used in these scams.
Ways to Avoid Being Duped by Cryptocurrency Scams
Cryptocurrency frauds are common and often very well done. You can take the following actions to safeguard yourself:
- A wallet with private keys is required to invest in cryptocurrencies, so keep it secure. If a business asks for your keys so you may participate in an investment opportunity, it’s probably a fraud. Safeguard your wallet’s keys.
- Keep a close eye on your wallet app: When sending money for the first time, do not send a large amount to verify the app’s validity. Stop updating your wallet app and remove the app if you see any odd activity.
- Just invest in items you are familiar with. If you are unaware of how a particular cryptocurrency functions, it is crucial to stop and do further research before deciding whether or not to invest.
- Take your time: Scammers often use strong pressure techniques to convince you to spend your money immediately, such as by providing bonuses or discounts if you do so directly. Make sure to take your time and conduct unbiased research prior to making any transactions.
- It would be best to avoid social media ads since cryptocurrency scammers often use them to advertise their fraud schemes. To provide the appearance of authenticity or to offer promises of freebies or free money, they may use illegal images of famous persons or successful business people. When bitcoin investment opportunities are promoted on social media, use a sceptical eye and do your homework.
- Avoid cold calls: It’s a fraud if someone reaches you unexpectedly to sell you a cryptocurrency investment opportunity. Never provide private data or money to anyone who approaches you in this way.
- Download programs only from official stores: Although phony apps may end up in the Apple App Store or Google Play Store. These are the only places you should ever download apps.
- Learn more about the most widely used cryptocurrencies to ensure they are not frauds. If you’ve never heard of a particular cryptocurrency, do some research on it. Find out whether there is a whitepaper you can read, find out who runs it and how it works, and look for sincere testimonials and recommendations. To check for fraud, locate a complete and trustworthy list of
fake coins. If a business offers guaranteed returns or claims to be able to make you wealthy overnight, it most likely sounds too wonderful to be true.
- Last but not least, never invest the money you can’t afford to lose. Cryptocurrency is speculative and volatile, so understanding the risks is crucial, even if it is not a scam.
- Use two-factor authentication to safeguard your crypto app.
You should know all the principles of security measures to avoid being involved in fraud. Don’t hesitate to do research on the crypto site and its CEOs before considering investing in it.