Crypto Scams to Avoid: 5 Tricks Scammers Use
With the rise of the crypto market, it is becoming more and more difficult to stay away from scams. It seems like I come across a few just about every day. Even though I hope people will not fall for these malicious scams, the sad reality is that many do. According to an article I read recently, scammers took $14 billion worth of crypto last year. So, how can we protect our coins? Well, education and vigilance. I hope to provide you with a bit of the former with this post, and the latter I leave to you. There are many ways that scammers use to trick people into giving them their money.
Here are five tricks that scammers use to get your money:
1. Technical Support and Impersonation Scams
Scam customer support phone lines are set up, impersonating a range of cryptocurrency organizations and exchanges, including Binance and Coinbase. These scam phone numbers are then widely disseminated on the internet, tempting naive victims looking for help. Outbound calls to potential victims may also be made by fraudsters. These con artists are experts at social engineering, deceiving and manipulating you into providing personal information that would be used for fraudulent purposes.
2. Giveaway Scams
Scammers use social media to spread giveaway schemes. They distribute images of fabricated correspondences from firms and executives offering a giveaway with links to phony websites. Fake profiles will then react to these postings, confirming the “legitimacy” of the scam. Once you respond, the bogus websites will urge you to “verify” your address by transferring crypto to the scam giveaway.
3. Ponzi and Pyramid Schemes
These con artists encourage you to invest money in order to get spectacular returns with no financial risk, and then they encourage you to bring in additional individuals to do the same. In order to make money, they frequently require a steady supply of new “investors”.
4. Extortion Scams
Scammers will often use information sourced from data breaches at other websites to trick you into thinking that they have more information about you than they actually do. For example, they might show you an old password that you may have used to affirm that their scam is legitimate. While these messages might be worrisome, they are nearly always false.
These scammers set up malicious websites which mimic an authentic crypto site in order to trick you into entering your login credentials or other sensitive information. These fraudulent websites are distributed through a variety of methods including email, SMS text messages, social media, and search-engine advertisements.
I cannot emphasize enough if you transfer your coins to a third party, you cannot cancel payment or reverse it. So be sure that any involved third-party services and merchants are legitimate before sending your crypto, and only transfer your cryptocurrency to entities you trust.
Remember, if it seems too good to be true, it most likely is!
Are you ready for the crypto economy? | THE CRYPTO PIE
Each time you turn on the news, read the papers, or scroll through your Twitter feed, you'll most likely see stories…