HOW TO AVOID CRYPTO SCAMS
Scams are a pervasive problem in today’s world. As a matter of fact, scammers are everywhere, and they are even more prevalent in the lucrative crypto industry, which is one of the fastest-rising and most profitable means of investment. Crypto is actually a feast for scammers which is why there are numerous cases of scams these days. To avoid becoming a victim of these scams, you must first understand how they operate. Otherwise, you will become a catch in their net. 🐟
Social media is a very fertile ground for cryptocurrency scams. Currently, social media platforms mainly Twitter, Telegram, Instagram and Facebook have become a go-to place for fraudsters to make huge profits. 📱
It’s literally a haven of fraudsters. Scammers are really cashing in on this crypto craze. According to fortune.com, “reports show that 64% of the reported investment scams on social media involved bogus cryptocurrency payments”. 😮
What forms do these scams come in?
Scammers exploit social media platforms to impersonate friends and family to persuade netizens to make fake investments. The majority of investments are made using cryptocurrencies with the promise of large profits. These scammers hack existing profiles on social media networks and send messages to contacts or friends asking for money to be sent in Bitcoin and other cryptocurrencies.
Dating apps and websites are sometimes used by these scammers because people on such apps are usually searching for love and might overlook certain red flags that are related to crypto scams.
The next time you see such a message from a contact or friend, do not fall for it. You could ask your contact through another platform to know if the message is authentic or not. Be vigilant. 😉
🥶 Fake verified accounts
Some scammers create screenshots of fake tweets with the accounts of influential people such as Bill Gates and Elon Musk and in these tweets, they solicit crypto payments promising that all payments sent to the address stated will be doubled. Unbelievable!
Sometimes these scammers create fake accounts impersonating popular people and host Giveaways.
To take part in the giveaway, you must first send a certain amount of cryptocurrency to an address.
Always be skeptical of giveaways on the internet, that sound too good to be true. Make sure to do thorough research and check if the giveaway URL directs you to an official website.
🥶 Digital collectibles and Games
Experienced coders now create new games on blockchain and do it as quickly as the price of gas fares is rising.
Getting eager crypto rookies on social media to acquire a type of newly produced coin or token to be able to access a game is a simple way to defraud them. These con artists make money when enough people push up the price through demand and supply and they sell all of their assets and vanish in a move known as rug pull.
Do thorough research on tokens that you need to access a game.
🥶 Phishing scams
This type of scam is one of the oldest and most used.
Cryptocurrency phishing scams are no different from regular phishing attacks. Emails or messages are sent on social media to bait recipients into clicking links and inputting their personal information.
The perpetrators then gain access to your personal information and may withdraw all your funds.
Do not click any link sent to your DMs or email you are unsure of. Do not input your password to your crypto wallet on any website.
🥶Technical support scams
Scammers sometimes imitate numerous social media and online firms, including popular cryptocurrency exchanges. When you contact them, they volunteer to solve your issue and they request your personal information like your password to do so.
Even though it seems like it’s going to be hard to fall for such a scam, do not underestimate these scammers, they are extremely adept at manipulating targets into giving out personal information. Never give out your password or 2-factor authentication security codes to anyone under any circumstance.
Additionally, here are some red flags you can look out for
🚩 Promises of free money or money doubling. There’s no free lunch.
🚩 Typographical errors and blatant misspellings in posts, emails and convos.
🚩 Inadequate info on what your money is going into.
🚩 Contractual obligations that prevent you from selling your cryptocurrency.
🚩 Acts of blackmail, persuasion and extortion.