Amidst this Coronavirus pandemic, scams are flourishing in the cryptocurrency world. Scammers are taking advantage of malware, fake investment programs, and even fake donations.
They also take advantage of buyers and sellers of Bitcoin, Ethereum, and other cryptocurrencies as they are the hot commodities in online trading. It is possible for a smart investor to harvest big profits through cryptocurrency and blockchain platform. But this can blind some people to the risks and enable crooks to lure them into scams.
Cryptocurrency Scams: Beware Of These Scams
The warning signs of those scams are:
- Someone sends you a message out of the blue about a virtual currency investment opportunity
- claims that a virtual currency investment involves no risk and surefire profits
What to do?
Here is a list of some Do’s when you get warnings of being scammed.
- Try to Understand the risk
- Scammers often try to create a false sense of urgency and you should resist pressure to buy right now.
- check out any dealer in virtual currency options or futures contracts before you buy
- Thoroughly research any virtual currency platform or digital wallet provider before providing any credit card information, wiring money, or disclose sensitive personal data.
- Carefully read any agreement with a digital wallet provider
What not to do?
Here is a list of some things when you get warnings of being scammed.
- Don’t put money in a virtual currency investment if you don’t really understand it’s working.
- Don’t deposit money that you can’t afford to lose
- Don’t buy virtual currencies based on any anonymous tips
- Don’t share your “private keys” with anyone
Most Common Cryptocurrency Scams
Here are the 4 most common crypto scams and ways to avoid becoming a victim.
- Fake websites
There are a surprising number of websites that have been set up to resemble original, valid startup companies. Check whether there is a small lock icon indicating security near the URL bar and “HTTPS” in the site address. If these two factors are missing, then think twice and conduct research on those websites before investing money.
- Fake mobile apps
Many fake mobile apps are available for download through Google Play and the Apple App Store. If the branding looks inauthentic with strange coloring or an incorrect logo then do not provide access to any personal details or your mail address.
- Offers through social media
Don’t trust offers that come from fake accounts on Twitter or Facebook, especially if there seems to be an impossible result. If someone on these platforms asks for even a small amount of your cryptocurrency, you have to be extra careful.
- Scam mails
Take care of scam emails even if it looks exactly like an email you received from a legitimate cryptocurrency company. Don’t fall for these fake emails and websites that often announce fake ICOs, or initial coin offerings, as a way to steal substantial funds.
As you consider investing in different crypto startups and exchanges, always beware of these scams. Scams are everywhere online and scammers are finding more ways to use the interest of people in cryptocurrency.