Even though cryptocurrencies are built on blockchain technology, which makes them unique and impossible to replicate, even minimizing any scam that might come alongside them, these days, ‘crypto scam’ is a very common term that we all hear.
So how does a crypto scam happen?
Certain crypto scams convince the victim to share personal information such as a security code or digital wallet by alluring them through some giveaway schemes or fraudulent business proposals. This gives hackers direct access to the victim’s digital wallets and transfers cryptocurrency to their compromised platform.
Eight Tips For Staying Away From Crypto Scams
How do you conduct a crypto risk assessment? Here are eight tips to help you stay away from crypto scams.
1. Do thorough research
Check and double-check until and unless you are sure, do your research properly before investing anything in crypto. Don’t fail trap to an investment that sounds pleasant like jingle bells because it could be a scam.
2. Always keep your guard up
Don’t trust anyone who comes to you concerning crypto or gives you a persuasive offer of giveaway or freebies in exchange for personal information. Remember, it could be a potential scam. Even if the source looks reliable, it is advisable not to go through with it.
3. Take extra care of your crypto wallet.
Don’t share your login credentials with anyone or your security code. It’s best to store your information somewhere offline so that hackers can’t have access to it. Hackers are known to unlock crypto wallets to get access to funds.
4. Always remember to check that URL, word by word, letter by letter.
Scammers tend to copy the URL of a reputed website and jumble some letters here and there to make it look more authentic. That is why many people fall victim to the crypto scam. Check that URL and look for the lock sign at the end of it. Turn on your antivirus to get an alert on such a website.
5. Are you using two-factor authentication?
You can also secure your crypto wallet by applying two-factor authentication. It isn’t bulletproof entirely but will still do the job. Many new and popular crypto exchanges like Binance have introduced two-factor authentication as an added layer of security.
6. Don’t fall prey to fake recruiters
There are people who are willing to prey on people who are vulnerable by exploiting their weaknesses. The biggest problem these days is unemployment and scammers are ready to exploit your need by asking you to trade in Bitcoin for their job proposal as some sort of fee and they vanish into thin air once they get what they want.
7. Beware of Crypto phishing scams
These are like the scams which come through fake emails or messages from an unknown address.
Often providing you with a link to click on, as bait to0 access your personal information and use it to hack your crypto wallet.
8. Don’t be easily influenced
Some influencers these days are paid a hefty amount to convince or advertise to their followers to invest in some form of cryptocurrency. Intentionally or unintentionally, people might fall prey to this scam just because someone they admire has suggested it. Don’t buy crypto just because someone suggested it. Buy it because of its use case. And because it’s backed by credible investors.
Cryptocurrency is the future, and it’s sure to turn things digital. However, the tech is still new and in its nascent stages – kind of like how the internet was back in the 1990s. And scammers are waiting to take advantage of your carelessness.
So, be aware, be attentive, and do your research.