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How to Avoid Cryptocurrency Scams

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How to Avoid Cryptocurrency Scams (1)

Cryptocurrency has grown in the last years with an increase in the number of investors looking to get a piece of this growing asset. After all, it has many benefits, including low transaction fees and a strong security system. However, like any other good thing, one of the challenges that have faced cryptocurrency is scams. A lot of people are willing to invest in crypto, but with so many scams going on, it has been hard for most people to take such a huge step. Here are some of the common cryptocurrency scams and how you can avoid them.

Giveaway Scams

A lot of public figures talk about cryptocurrency on their social media platforms from time to time. This is something that scammers take advantage of by organizing fake giveaways. They will use the names and pictures of public figures to get money from suspicious visitors. They might even respond to some posts on the giveaways to make it seem more legit. There have been several cases of Twitter accounts of high-profile figures being compromised by hackers to dupe people into sending money to a crypto-wallet address. If you have invested in bitcoin, be careful of those giveaways that seem too good to be true.

How to Avoid Cryptocurrency Scams (1)

Investment Scams

Be careful of investment scams where someone approaches you and says they have a once-in-a-lifetime opportunity to help you make money. Sometimes a crypto scam may take the shape of a pyramid scheme. A scammer tells you to pay them in crypto to join their company. They will tell you that the more people you recruit into the program, the more money you will make. However, you will only end up investing in a scam in the end. When investing, do thorough research into the company that has approached you. Be particularly on the lookout for a lot of typos or grammatical errors, as that could signal a scam.

Phishing Scams

Phishing is where a scammer tries to get your personal information such as social security number, address, name, or passwords. If you are a cryptocurrency investor, the scammer will focus on nabbing the private key or seed phrase from your cryptocurrency wallet. A phishing scam can originate from an email, text, or phone call. However, they are also popular on social media sites, where people often ask questions relating to crypto. If you need any information or help regarding crypto, be careful of people who are very willing to help you, especially through inboxes, instead of responding to your question openly.

Fake Apps and Websites

Many criminals have created fake apps and websites using names that are almost similar to popular cryptocurrency services. For instance, something like Rubix.io may take the shape of rubic.io. If you fall for such a scam and enter your personal or account information, scammers can steal your cryptocurrency or identity. Other times, you will unknowingly send cryptocurrency to the scammer’s wallet. Watch out for fake apps and websites whenever you need any cryptocurrency services.

Extortion and Blackmail

Scammers might source information from external websites or through data breaches and trick you that they have information about you, and if you do not pay up, they will release the information online. If this happens to you, run a malware scan on your computer to ensure you do not have a virus, report the email as a scam, and change your information. As much as someone telling you they will expose compromising photos or information about you can be alarming, most are scams.

Cryptocurrency transfers are irreversible, meaning victims have a lot to lose if this happens. To be safe, always watch out for the scams mentioned above to avoid compromising your finances.

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