5 Ways to Avoid Crypto Scams

Scams can happen anywhere and the crypto world is not immune to it. Scammers keep coming out with more and more advanced hacks and tools for fulfilling their ill-intentions. So, if you are planning to invest in cryptocurrencies it becomes important to stay updated with the latest scamming technologies.

Top Ways to Avoid Crypto Scams:

Phishing scams: This common scamming technique uses what is called “social engineering” in order to get assets from you. Phishing will use instant messages, social media, emails, or SMS, directing you to follow some compromised URL. The user will be tricked into providing sensitive or private information about himself without realizing it, like his password and username, credit or debit card details, and private keys to his digital wallet. The best way to avoid this is to know what the red flags are:

  • such mails will usually have an urgency in them
  • copied logos to make them appear authentic
  • the information offered will be so less that you are tempted to click on the embedded link for more
  • message is designed to be visually appealing

Whaling scams: This is a kind of phishing scam but much larger in extent. It also makes use of social engineering for getting users to submit confidential information about themselves. Here, the target is typically an executive of any government institution or a private business. To prevent this, you should look out for red flags like:

  • Whaling scams will use emails that are deliberately designed to look like important business mails from legitimate sources
  • Underlying sense of urgency
  • Requests for information or funds that are never sent through emails
  • A fake concern in order to get some highly confidential information

Fake exchanges and wallets: These scams involve driving people to sign up for fake crypto exchanges. Such scams will usually have a promotional offer that is hard to resist. It will make the victim create an account for depositing Bitcoins into the wallet. The scam may even promise rewards for larger deposits. So, when downloading any wallet, ensure you have done a proper background research. Even stores like Google Play have been ridden with fake apps.

Giveaway Scams: These are frequently found on social media platforms like Facebook or Twitter and are meant for duping unsuspecting viewers. Most of these will ask you to send a small amount of cryptos in return for which they pledge to give away almost ten times the amount. This sounds too good to be true and you should be aware of such social media scams. These usually come from familiar-looking accounts so that you are tricked easily. You must understand that no legitimate entity that wishes to host giveaways will ask for money first.

Fake Mobile Apps: This is a common way to dupe crypto investors. These scams will make you download malicious applications that usually look like real ones. When you install such an app, you may think it is working fine but it is actually designed to steal your crypto funds. So, when you get an address to send money to or get money from, the app sends your money to a fraudster. Once the money has been transferred, it cannot be retrieved as there is no undo button. Another reason why people often fall victim to fake apps is because their ranks are shown as reasonably high in Google Play Store and Apple Store. The best way to avoid them is to download an app only from its official website.