7 Commonly Known Crypto Scams To Avoid

By June 10, 2021 No Comments

Crypto transactions are growing in popularity as a way to transfer funds across the globe. It’s also the reason why this is such an attractive asset to scammers. This post will provide you more information about 7 commonly known crypto scams and how to avoid them.

How to identify crypto scams

There are clear signs of scams or red flags that can help you identify crypto scams:

  • Scammers’ offers are too good to be true.
  • They try to mislead you. 
  • A scammer will send you an email with malware attached to it. 
  • They create a feeling of urgency or try to scare you to trap you.
  • Scammers will trick you to give up your personal information and details.

Read more about the most common ways scammers can get your funds and sensitive information.

1. Phishing emails

Phishing emails are increasingly becoming a serious problem that result in huge losses of funds. It usually involves a scammer pretending to be a support agent or company representative to extract your personal data.

They would contact you through email, phone, messengers, and fake websites and basically trick you into transferring your money to them.

Pay attention to the name of the sender and its domain name. You can verify the authenticity of the message with the company by checking it through their official support channels.

2. Fake social media pages

If you’ve been on social media, you’re pretty much aware of fake pages and accounts imitators. These malicious and impersonating pages are also rampant in cryptocurrencies and exchange platforms.

To detect a fake account, check the account URL address and look for misspelling or extra symbols.

3. Direct messages in social networks

Scammers would try to contact you in direct messages so none from the official company can track their actions.

They usually lurk in official groups for crypto wallets or exchanges and pretend to be members or a customer support to offer “help”.

Do not engage at all and check the authenticity of the social media page or the message you receive by contacting the support team through official channels.

4. Fake websites

There are various websites designed exactly like the official company websites to confuse users. Look for a lock symbol in the address bar near the site name. Click it to see the security certificate and the issuing organization. If it’s there, it’s a secure connection and a legit website.

5. Fake giveaways

Fake cryptocurrency giveaways have been a problem in the community since 2017. Scammers would ask you to send a specific amount of cryptocurrency to a giveaway address before you “get your reward” or before they “double your funds.”

Remember that a legit giveaway never asks you to send them money.

6. Fake ICO

Cryptocurrency technology and blockchain are developing at a fast pace, offering opportunities to earn. Although, there’s no guarantee that all crypto-related startups will be successful or legitimate.

During an Initial Сoin Offering (ICO) and Initial Exchange Offering (IEO), investors who are interested could buy into the offering. They would also receive a new cryptocurrency token issued by the company.

If the money raised did not meet the funds required for the project, it could be returned to the backers. It’s vital to get familiar with the token that you want to support. If you invest your money in a fake project, you will never get it back.

Meanwhile, if you’re going to take part in IEO, check for the project’s MVP. It proves that the team behind the IEO is working on the execution phase of the product.

7. Malware

You might get malware by clicking a link in a phishing email or on a fake website and social media.

Using malwares, hackers can get passwords to access computer networks, or information about bank accounts and credit cards. These days, malware can also be used to access cold crypto wallets.

These malware programs can change the crypto wallet addresses when you paste it from a clipboard. Instead of sending crypto to your wallet, you would be tricked to transfer it to someone else’s.

When transferring crypto, it’s a good idea to always double and triple check the recipient’s address. An up-to-date virus scanner can also be a huge help.

By being aware and avoiding these traps, you can protect your holdings. At FiFit, we make sure your funds and data are secure, although you’re the one responsible for securing access to your own account and assets. Keep your login credentials such as emails, user name, passwords, etc. safe.

If you liked our “7 Commonly Known Crypto Scams To Avoid” and found some valuable information, check this space regularly to get more updates on crypto-backed loans and cryptocurrency.