Cyber Security

How to protect yourself against crypto scammers

Bitcoin technology concept with circuit diagram

The world is currently evolving with people coming up with new inventions that will improve our lives and make work easier. Technology is a tool that has significantly improved our lives and our relations with one another. Cryptocurrency is one of the best technology investments developed over the years. Cryptocurrencies are a form of digital currency you can use to make purchases like regular currency. Still, they only exist virtually, meaning you cannot have a physical state of the coins. These digital assets are decentralized in nature, making it possible to use them over any country globally, which is a significant advantage but poses a huge challenge, as you will later find out. It would be best if you learned how to protect yourself from crypto scammers and frauds as you will discover that the world might soon result in using cryptocurrencies.

Cryptocurrencies have come to fame in the last years despite being developed about ten years ago, where some of the earlier created coins have gained substantial market value. Cryptocurrencies have proven to be valuable investments proving substantial profits through the different investment fields possible, and this has attracted many investors and a significant number of scammers. With the frequent use of cryptocurrencies, Cryptocurrency exchanges are being simplified by the development of apps and websites. It has become so simple to use cryptocurrencies, which has also brought vulnerability for many users of Cryptocurrency. Crypto scammers will be looking to steal your digital assets and use different approaches to do this, and you need knowledge of these techniques to protect yourself from these scammers.

Rise of Cryptocurrency Scams.

The popularity of cryptocurrencies has attracted a lot of scammers who aim to get your digital assets using various techniques, some of which we will quickly fall vulnerable. Cryptocurrency frauds have been on the rise over the years, as reported by the Federal Trade Commission. Beginning October 2020 to March 2021, there has been a reported cryptocurrency theft of over seven thousand people who have reportedly lost over eighty million as registered by the Federal Trade Commission. Bitcoin is the most popular Cryptocurrency gaining a massive footing globally. It would be best if you learned how to protect yourself from Cryptocurrency frauds as you are most likely to use this coin in your lifetime.

Different Cryptocurrency Scams

Cryptocurrency scammers use different approaches to steal your digital assets, and the many techniques can mainly be categorized into two.

These two main categories include;

  • Direct persuasion to send a Cryptocurrency scammer your digital assets.
  • Targeting to get digital assets by getting digital wallets authentication credentials.

These two techniques used by Cryptocurrency scammers have a variety of methods used to get the digital assets of your wallet, and you need to learn how you can protect yourself from these scams; for you to use and transfer cryptocurrencies, you need to have a cryptocurrency wallet or a bitcoin wallet as commonly known. Different scammers offer you bitcoin wallet screenshots to get your trust as they make you believe they have vast amounts of Cryptocurrency to gain your confidence. They then use this trust to persuade you to transfer your cryptocurrency coins to their wallets, promising different results depending on the method of extortion.

Social Media targeting offering investments

Cryptocurrency scammers mainly use this technique as it is most effective for reaching out to many people, meaning potential victims. Cryptocurrency scammers pose as investors offering different investment opportunities with huge returns on social media to attract potential victims. This scammer will easily convince unsuspecting victims that they will provide huge profits by investing in funded trade accounts where the profit is divided according to the amount invested. Many people fall for this type of scam and end up losing alot of valuable Cryptocurrency coins in this way. You can easily protect yourself from this type of Cryptocurrency scam by knowing how to identify fake investment opportunities which offer huge paybacks. Most, if not all, of the investment opportunities promising giant returns and no losses on social media, are primarily scams trying to prey on unsuspecting investors.

Impersonation and give away scams.

Scammers have used this technique to get thousands of people to send them cryptocurrency coins by posing as billionaires or rich people. They then convince public members to transfer digital assets such as bitcoin to malicious and untraceable websites and wallet addresses. This scammer may impersonate an influential person’s social media account as they did to Elon Musk’s Twitter account and promise people a double refund within some hours of depositing bitcoin in a particular cryptocurrency address. These impersonations have a sense of urgency and can easily be identified by the considerable payback they offer within some hours or a day. Protect yourself from such scams by not transferring your coins to unreasonably profiting initiatives.

Theft by gaining digital wallets authentication credentials.

 To aces the assets in your bitcoin wallet, you would need to have access to the authentication credentials, which will enable you to transfer the funds to a different wallet or use separate untraceable addresses. Scammers use psychological manipulation and deceit to gain access to your cryptocurrency wallet’s vital information and use this to get the digital assets in your wallet. Crypto scammers will use different tricks and methods to get their information. These tricks and manipulation techniques include manipulating to believe you are dealing with a government entity, tech support member, or a known financial business organization member. Take as much time to gain your trust so you can reveal vital information on your Cryptocurrency wallet.

Scammers can also develop malicious websites where you are directed to enter vital information about your wallet. They later use this information to get funds from your wallet, and this is a common trick used by Cryptocurrency scams as this is the most common scam reported by the federal trade commission. You can easily protect yourself from these scams by carefully checking Url website addresses, as fake ones are easy to identify.

It would be best if you learned how to identify a potential bitcoin scammer so you can very well protect yourself from cryptocurrency scammers by learning how to identify them.

Signs of a potential crypto scam

It would help if you learned how to identify signs and claims that crypto scammers frequently use so you can protect yourself from cryptocurrency scams. Many Cryptocurrency investment programs, which are potential scams, have standard signals they display. You can quickly identify and protect yourself from losing money by trying to invest in these scams.

Some signs of a possible crypto scam include;

  • Guarantee you will make money and no losses by investing.
  • Huge guaranteed payouts are assured huge profits from crypto investments.
  • Free Cryptocurrency, which attracts unsuspecting victims.
  • Poor explanation of procedures of different Cryptocurrency investments.

Measures to protect you from a crypto scam.

You can undertake specific protective measures to protect your digital assets, which will prove invaluable protection against crypto scams.

Some of these measures include;

  • Do not invest your money into Cryptocurrency if you do not understand it.

Not investing in Cryptocurrency will protect you from the risk of losing your money before you even understand how Cryptocurrency works.

  • Don’t invest in Cryptocurrencies using the advice given by people online.

By not investing in advice from people online, you protect yourself from the risk of losing a lot of money by investing in schemes that will fail you.

  • Don’t trust posts promoting unrealistic and fake giveaways.

There are a lot of posts online that will promote fake giveaways promising returns for sending crypto coins to specific Cryptocurrency wallets and are usually fakes. It would help if you learned not to trust these opportunities, which quickly get-rich schemes as explained by the many videos on YouTube.

  • Do not share private information regarding your Cryptocurrency wallet.

By not sharing vital information regarding your cryptocurrency wallet, you will be protected from possible hacks to your Cryptocurrency wallet, which will leave you devastated and in huge losses.

Conclusion

Crypto scams are a common thing this day, and a vital skill you will need to learn is how to get yourself protected from these scams as Cryptocurrency is the future of money. Cryptocurrency education is a broad topic that requires a lot of time to learn, but you can learn how to protect yourself without knowing everything about Cryptocurrencies. Protecting yourself from crypto scams will only begin with you, and you need to understand that you are in charge of the safety of your digital assets. Are you willing to learn and use this knowledge and protect yourself from crypto scams?