How to spot common cryptocurrency scams

As cryptocurrency investors keeps increasing also does cryptocurrency scams.

Around 2020 and 2021, the amount of crypto recorded for an average investor is above 15%, a research by the Financial Conduct Authority Found. Naturally investors’ are anxious in missing out on this hot opportunity which has call the attention of scammers all round.

We will expose you on how to identify common crypto currency scam from afar without falling victim:

One very good way to avoid fraud and falling victim of scam is by being vigilant and watchful on what you do and how you do it.

Just as with any other popular investment, we have scammers hiding in disguise looking for ways to profit from investors’ eagerness to earn, and their lack of expertise.

Cryptocurrencies especially the bitcoin has become a hot plate. It produced returns that S&P 500 or FTSE 100 which investors could only but dream of.

This naturally attracts scam who come in disguise to deceive and dupe people. As such many have continue to become victim of this circumstance.

The reason is that cryptocurrency is a controversial platform, and much of the industry sits in a regulatory grey area.

Ways to identify a cryptocurrency scam.

The following list covers the main types of cryptocurrency scam. As with any investment decision, the best way to protect yourself is to:

1. Ensure you ask and until you feed your curiosity before making any financial transactions.

2. Coinbase scams
Trading venue: this is actually one of the world’s most recognized cryptocurrency brands.

The popularity of this particular brand has led to it being used in SMS and email phishing scams who are knowledgeable in technology that if you not careful you will fall victim of their tricks.
Their target is to get the potential victim who will click on a dodgy link that will make them become a prey in their hands.

Investors who visit the shady website lets thieves plant malware on their target’s mobile or PC, to harvest their data or steal other personal information which will aid them faster with their plans.

3. Technical-support scams

This is a way we often release our information to strangers all in the name of not being able to understand certain crypto currency exchange and we need an expert to guide or help us out as a result we fall victim what we call crypto technical-support scam.

There have been several warning by FBI about scammers posing as cryptocurrency exchange support staff, gaining the trust of victims and then parting them with their digital currency investments.

Always remember that the aim of scammers is to get the passphrase that unlocks your cryptocurrency digital wallet. When that is done they are allow to filch that crypto by sending it to another wallet. So it is important to always be skeptical with your personal information.

5. Giveaway scams:
Nigerian love give away especially when it has to do with money. And that’s what makes giveaways one of the trick employ by scammers to engage in fraud.

A popular and common trick use by scammers on victim is convincing them that they will double their crypto if they send it to a celebrity — faked, of course. The US Federal Trade Commission told Reuters in May 2021 that $2m (£1.45m) had been sent to Elon Musk impersonators in just six months.

Most social media have become various channel where this unfortunate incident occur. Usually for them to succeed victim must give out information that are personal to them.

Next time try to do your research well before jumping in to conclusions and giving out information to any one especially on social media.

Hope this was helpful.

Leave a Reply

Your email address will not be published.