As a new form of investment, cryptocurrency has drawn considerable attention. But here’s the thing: fraudsters prey on people’s understanding or lack thereof of cryptocurrency investments and how they operate. Younger folks are also suffering significant losses.
Learn how cryptocurrencies vary from cash as well to other payment options before using or investing in them. You should also be aware of cryptocurrency scams and how to identify potentially compromised cryptocurrency accounts.
Why are Cryptocurrency Scams on the Rise? How to Avoid Them?
Right now, it seems as though cryptocurrency is everywhere. We learn about the recent cryptocurrency’s explosive worth on the nightly news. It seems like there are new companies adopting cryptocurrencies every day.
Celebrities even support (or criticize) these innovative alternative payment methods, which can have a significant impact on their valuations.
Nowadays, many people are diversifying their investment portfolios by adopting cryptocurrencies. It is viewed by novice investors as a decent way to get started investing or to make some quick money. To be sure it’s the perfect choice for you, do your research like you would with anything new.
Additionally, you must watch out for fraud.
How to Spot Cryptocurrency Scams?
The popularity of cryptocurrencies has increased both the number of cryptocurrency investors and the prevalence of bogus cryptocurrency investment schemes. Fraudsters are always coming up with new cryptocurrency-based schemes to rob your funds.
Here are a few things to be aware of in order to prevent a crypto trading scam.
- Only con artists request payment in cryptocurrencies. No trustworthy company will request you send cryptocurrencies in advance, neither to make a purchase nor to safeguard your funds. That is always fraudulent.
- Profits or significant returns are only guaranteed by fraudsters. Don’t believe those who tell you that you may profit from the cryptocurrency markets quickly and effortlessly.
- Never combine investment advice with online dating. It’s a fraud if someone you meet on a dating website or app requests you to send them cryptocurrency or wants to teach you how to invest in cryptocurrencies.
Here are some typical cryptocurrency investment scams and tips on how to identify them.
- Unexpectedly, a so-called “investment manager” calls you. If you buy cryptocurrencies and deposit them into their online account, they promise to grow your money. They direct you to an investment website that appears legitimate, but its claims are false, just like theirs.
- A fraudster poses as a famous person who can double or quadruple whatever cryptocurrency you pay them. However, celebs aren’t getting in touch with you on social media. It’s a con artist.
- An online lover requests money or cryptocurrencies from you to assist with investments. That is a scam. Know this: that person is a scammer as soon as they ask you for money or gives you investment advice after meeting you on a dating website or app.
- Scammers make vows of large rewards with assured returns or assure you that you’ll make money. No one can provide those assurances. So it’s a scam if a business or someone else says you’ll profit.
- Scammers make free money pledges. They’ll offer free cash or cryptocurrencies, but free money is usually a scam.
- Big assertions without backing or justifications are made by con artists. Regardless of the investment, learn how it operates and inquire as to where your funds are going.
How to Protect Yourself from Cryptocurrency Scams?
Scams involving cryptocurrency investments can take many different forms, but they are all full of bogus assurances and promises. Scammers may advertise investment sites that appear legitimate, but when you try to withdraw your “invested” funds, you are unable to do so.
Others perform giveaways while posing as famous people, such as a poser Elon Musk, and make promises to double or quadruple any cryptocurrency you send.
In the promise of love, con artists frequently utilize dating websites to seduce victims into making fictitious cryptocurrency deposits.
If you’re considering making a cryptocurrency investment:
Conduct Research
The most well-known cryptocurrencies are legitimate. However, if you’ve never heard of a specific cryptocurrency, do some research on it. Check to see if there’s a whitepaper you can read, learn who controls it and how it functions, and check for real reviews and endorsements.
In order to avoid scams, look for a current and reliable list of bogus cryptocurrencies.
Keep Your Wallet Safe
A wallet containing private keys is required in order to invest in cryptocurrencies. It’s quite likely a scam if a company requests your keys so you can take part in an investment opportunity. Secure the keys to your wallet.
Only Download Applications From Trusted Sites
Although phony apps may get up in the Apple App Store or Google Play Store, downloading apps from these stores is safer than from other sources.
All of these actions are easy to do. Moreover, by adhering to them in all circumstances, you could avoid being the next prey of cryptocurrency’s legions of fraudsters.
How to Report a Cryptocurrency Scam?
It’s critical to take swift action if you have already made a payment or given out personal details because falling prey to cryptocurrency fraud can be terrible.
Report any cryptocurrency scam or other shady activities to:
- Your bank
- Police officers
- Local regulatory bodies
- Other related scam alert agencies
Or you can seek help from the Global Fraud Protection team. Getting your money back is possible.