Cryptocurrencies have taken the world by storm, and with their meteoric rise in value, a corresponding increase in scams has come. As an investor in cryptocurrencies, you must be aware of the various types of scams that are out there to protect yourself from becoming a victim.
This blog post will discuss some of the most common crypto scams that you must be aware of.
Let's take a look at these scams.
Imposter websites have copied an original website's name, logo, and content to get the user into their website. This type of scam is particularly common with ICOs, and the person or company will sometimes even go to design the layout identical to the site they are impersonating. So how does one avoid this? A surefire way is to check for SSL certificates used for secure webpages (only present on legitimate sites).
Another good indicator of a potential imposter site is if it asks you for your private keys directly. Bitcoin Prime is one of the top trading platforms you must choose as a beginner.
Fake Mobile Apps
Mobile apps for cryptocurrency exchanges and wallets are often the top choice because they allow users to effortlessly access their wallets or exchange accounts. However, there have been reports of fake mobile apps that appear legitimate but steal user funds or login credentials. Keep this in mind when going to a new website with a mobile app.
Check if it's a "real" company by checking through Google Play Store or Apple's App Store to see if anyone has reported the app as phishing software. If you find an illegitimate mobile app, report it immediately so others will not be scammed.
Bad Tweets and Other Social Media Updates
Ever since the dawn of social media, there have been people trying to scam unsuspecting users for either their personal information or money. Be on your guard when you are tweeting about cryptocurrencies because you are more likely to get phished by scammers.
One of the most recent ones is a "giveaway" scam in which the user will be approached through DM (direct message) and told how they could win some crypto coins if they send funds to a designated wallet address. Some have even gone as far as impersonating real blockchain personalities -asking their followers to send them some bitcoin/altcoins so that they can hold another giveaway event.
Emails asking you to send them money in exchange for more coins when they say it is gone or something like that. It is also another reason why it's better not to randomly friend people on crypto social networks.
The scam email will be aimed at your wallet address, where they want you to send the coins. They will tell you the wallet is empty, but if you send it coins, then they can double or quadruple your coins.
The Bottom Line
It is important to understand that cryptocurrency scams are becoming more and more sophisticated, so it's up to us to educate ourselves on the different scams. This will help protect you from losing your hard-earned money.