Everything you need to know about Cryptocurrency frauds
Cryptocurrency is also known as virtual currency. From the past decade, it has taken investors, and anyone involved in the cryptocurrency, on a rollercoaster journey. It is difficult to predict the future of the virtual currency, which has been disruptive ever since its introduction in 2009.
It is easy to transfer cryptocurrency to anyone online without a mediator, like a bank. Among all the currencies, Bitcoin and Ether are famous cryptocurrencies, and several others have also gained good recognition with time. People might make use of cryptocurrencies for fast payments and to keep away from transaction fees. It is quite simple to buy cryptocurrencies as an investment point of view, hoping the price goes up. You can pay money for cryptocurrency with your card and can store it in a digital wallet, as per your choice, either online or on your hardware.
Before you invest in cryptocurrency, know that there are several protections that you have to take care of to stay away from scammers. Here in this blog, we are going to discuss the points that you need to keep in mind while using this established digital currency.
Cryptocurrency not managed by a government
Do you know that Cryptocurrencies are not under the control of the government and not issued by them? Yes, these are different from United States banks, and thus it is clear that these do not have the same protections as currency in a bank account. In case you store your Bitcoins in a digital wallet provided by a company, and the corporation goes out of the trade or is hacked by scammers, then the government is not accountable for your loss. The government is only responsible for your money within banks or credit unions.
Cryptocurrency Scams
With the growth in the Cryptocurrency marketplace, more people are getting interested in the new trend. Online scammers, at the same time, are finding novel ways to gain huge profits. For illustration, we can say that scammers might offer some investment offers or opportunities to double the investment in short periods.
· When any person promises you such things, it is the right option to cross-check the authenticity:
· Verify the details of the person or company that guarantees you short term benefits
· Promises significant benefits that will make your investment double in a short time
· Promises free money
Also Read: Top 10 Blockchain Platforms of 2020
Crypto Hackers
When we talk about hacking, it isn’t related to your bank accounts, but hackers use advanced techniques to control your crypto wallets. It is a process when scammers use your device for mining cryptocurrency for their profit and without your consent. To make this process successful, Scammers use some malicious code onto your device, basically by visiting a website. After this, this can control your device without your prior knowledge.
In case any time you experience your smartphone or laptop is working slower than usual, or the battery is draining at a fast speed or crashing, your device might have been hacked.
Fraudulent wallets
Several wallets are related to cryptocurrency, as there is nothing wrong with using these applications. These mobile apps are mainly designed and developed to manage your cryptocurrency collection a lot to select from. These are easy to use and help in managing the virtual currency.
Yet there are various cryptocurrency fraud wallet applications and on Google’s Play Store. Google is continuously making efforts to remove these malicious apps.
Unregulated brokers
Don’t trust everyone when it comes to your cryptocurrency portfolio. When you check online, there are dozens of unregulated online brokers and exchanges and to keep away from frauds. They use various scamming schemes to attract customers and also offer low-cost products and short term returns.
Once you trust the broker and make the deposit, it will become harder to withdraw your currency. For example, to get back your currency, they would ask for a high percentage as you can’t get back your currency. In some cases, even the scammers stop receiving your calls.
Social media engineering
You must have heard about social engineering as it is used widely by scammers. Social media channels have become an excellent means to get to know investors and people who are interested in trade cryptocurrency. However, there are several fake cryptocurrency traders and scammers who are eagerly waiting for such opportunities. Thus, it is good only to choose the right verified communication channels and keep away from private messages related to money transfers from unknown traders on Twitter, Facebook, and Instagram.
Scam emails
Sending emails is not a new trend but still used by scammers to trap potential investors. What’s even more upsetting is that emails received from fraudsters look like authentic emails from an established company with name, logos, addresses, social media details. In case you receive such an email, then avoid every bit of information before acting.
To avoid such situations
· Use antivirus software
· Update your device software and apps automatically.
· Never install third party software or apps you do not trust.
· Do not open emails from unauthorized persons
· Be careful about visiting unfamiliar websites.
· Use a browser extension for ads
· Check details before installing any software
Conclusion:
In a nutshell, we can say that Bitcoin is a stable currency, even its prices are unstable enough. Thus, don’t maximize your chances of losing money by falling in the traps of scammers. Only choose the right communication channels for investment and stay away from fraudsters. In case you feel something is not right, then probably it is good to trust your gut feeling.
