How to avoid crypto wallet scams?
When using crypto wallets, you need to be mindful of security risks. The growth of the crypto market attracts the attention of different kinds of scammers that aim to steal your funds. So, every user needs to be familiar with existing scams and avoid falling victim to them.
We are here to guide you and provide helpful wallet security tips! Stay alert and educated!
What is a crypto wallet scam?
Crypto wallet scams are a type of illicit activity when a fraudster tries to get access to your crypto wallet to steal your funds.
Since crypto wallets are, basically, your main gateway to crypto, scammers frequently concentrate their efforts on breaking into them. Scammers use different ways to get hold of their victims’ crypto holdings.
Let’s check out some of them.
What are the types of crypto wallet scams?
Imposter scam
Imposter scams is when criminals use fake identities and try to get crypto owners to let them access their crypto wallets. Basically, a scammer pretends they are legit to deceive crypto users and commit fraud.
For instance, criminals may contact a wallet user and present themselves as a security team of their crypto wallet. Then, they may tell the victim that their crypto holdings are in danger and the only way to save them is to allow the security manager to access the crypto wallet. A person unfamiliar with such scams can easily buy into the scammers’ story and share their private keys with them.
How to avoid imposter scams?
Remember: never share your private keys or seed phrase! You never share your bank card CVV, right? Same here.
The exact scenarios for imposter scams vary, so criminals may pretend to be virtually anyone.
Note that crypto wallet teams, including the MyNearWallet team, will never ask you to share your seed phrase or private keys. This information is completely off-limits.
Fake Crypto Websites: Wallet Imposter Scam
By searching NEAR Wallet on Google, you can find fake links, like the ones in the image. Those usually are fake versions of official or popular crypto wallets placed there to exploit victims.
Don’t click such links and don’t insert any information on such a website.
How to avoid imposter wallet scams?
Check the website and the URL. Check the available information on the legit ecosystem wallets. Don’t click any suspicious links.
Giveaway scam
In this case, criminals conduct fake giveaways pretending to be some major brands, often popular cryptocurrency wallets. Such giveaway campaigns are heavily promoted on social media, including by sham celebrity accounts. These posts usually have a ton of comments where fake participants thank the hosts for the rewards (which are also fake).
Scammers invite people to participate in their giveaways and win expensive prizes. Sounds harmless? But no — they charge a fee for participation. users are required to send some crypto to a wallet, and in return they are promised to get back twice as much.
Eventually, scammers simply remove all of the information about their fake giveaways and disappear overnight, leaving participants with empty pockets and no winnings.
How to avoid giveaway scams?
- Don’t participate in sketchy giveaways where you have to pay an entrance fee
- Always check official social media accounts to confirm the giveaway info
Note that legit giveaway promoters will never ask for any fees. Participation in a giveaway is always free. It’s in the name!
Phishing scam
Phishing attacks target users’ private keys. Attacks are done via links and phishing email.
These links are sent to victims’ emails. They lead to pages that seem like websites of genuine businesses with a good reputation. Such links to fake websites look usually very similar to the legit brand’s one but still contain a tiny mistake (e.g., mynearXwallet.com instead of mynearwallet.com).
Another case: scammers may send a fake email masked as a letter from a cryptocurrency exchange or a crypto wallet used by their victim. The fake website usually requires the user to provide their private keys. If scammers get these keys, they gain full access to their victim’s cryptocurrency holdings.
How to avoid phishing?
- Pay attention to the link you’re clicking.
- It’s always better not to click the link from the email but to type the address in the address bar manually.
- You can also click on the lock icon in the address bar and check the domain.
Once again: never share your private keys! It’s your mantra.
Blackmail and extortion scam
Blackmail scam and extortion scam are pretty self-explanatory. Crypto users may be sent an email claiming that they have malware on their computer. The scammers then threaten the victim to activate the virus and delete all the information on their device if they refuse to cooperate.
In exchange for not launching the malware, scammers can ask the victim to share their private keys or send a sum of cryptocurrency. In some cases, users’ devices may actually be infected with ransomware, while in other cases, scammers can simply fake it.
How to avoid blackmail scam?
So, to avoid accidentally downloading a blackmail virus, do not click on any suspicious links.
Clipboard hijacking
A clipboard is a place in an operating system which stores temporary data. Some users tend to simply copy and paste their wallet addresses when making or receiving transactions. The information which they copy is stored in the clipboard.
Scammers can hijack a user’s clipboard and replace their cryptocurrency wallet address stored there with another one. Eventually, the user can transfer money to the scammers’ wallet address.
How to avoid clipboard hijacking?
- Install a good antivirus
- Beware of suspicious links
What are the red flags of a potential scam?
You should beware of a potential crypto scam when you are asked by someone to:
- share your private keys;
- transfer crypto to another person’s address;
- provide your crypto wallet’s seed phrase or any other security method.
Never do any of those things!
What can I do to protect my crypto wallet?
In order to protect your crypto wallet, you need to:
- use hardware or non-custodial wallets;
- keep private keys and a seed phrase offline and in a secure place;
- never share private keys or seed phrases with anyone;
- protect your devices;
- use a secure internet connection.
What to do if you got scammed?
Note that MyNearWallet is a non-custodial wallet, so it does not have any control over users’ funds, private keys, or seed phrases. Users are fully responsible for their funds.
“You become responsible, forever, for what you have tamed”, Antoine de Saint-Exupéry
- and you are responsible for what you have stored.
Still, if you have been scammed, you can try following these steps:
- report scammers to the authorities;
- send the rest of your cryptocurrency to another address;
- change all of your passwords;
- send scam warning to other people on social media.
Why is MyNearWallet secure?
MyNearWallet integrates the most reliable and effective crypto wallet security solutions.
- It is non-custodial: meaning that the wallet does not store users’ private keys or any other personal data on its servers.
- MyNearWallet lets users generate a seed phrase to recover access to their account.
- You can also connect your Ledger Hardware Wallet as one of the most secure options for storing cryptocurrency.
Conclusion
Cryptocurrency wallets have inherent risks, and you need to take them into consideration. There are many reliable mechanisms to protect oneself from becoming a victim of scamming.
If you take all necessary precautions, you will be able to avoid scam. Use MyNearWallet and all of its security features to keep your NEAR assets safe.
Want to learn more?
Explore our Crypto Education articles!
Check out “What is a seed phrase?”
Your Vocab for this Article!
- Imposter scams is when criminals use fake identities and try to get crypto owners to let them access their crypto wallets
- Phishing attacks target users’ private keys. Attacks are done via links and phishing email.
- Clipboard hijacking: when hackers steal or replace information copy stored in the clipboard.
Your rules to avoid scam:
- Never share your keys!
- Never share your seed phrase!
- Avoid clicking suspicious links/emails
- Think before doing something
