Protecting Your Cryptocurrencies and Avoiding Scams

Due to the irreversible nature of cryptocurrency transactions, fraudsters seem to have found new ways to target and dupe cryptocurrency users. As the popularity of platforms such as Yellow Card rises, fraudsters will continue to attempt to defraud people. 

In order to avoid falling for any fraudulent person's scams or tricks it is crucial that you know how to recognize a scam when you see one. 

Note: To prevent any fraud you can verify the authenticity of the channel or information by emailing us [email protected] we will respond to you immediately. 

This is why in this article we list some of the most popular cryptocurrency scams and how to avoid them below:

Fake Wallet Scams

Fake Wallet Scams are used to rob funds sent to cryptocurrency addresses. This can happen on both web and mobile app wallets downloaded from iTunes or Google Play Store.

Fake ICO’s 

Initial Coin Offerings (ICO) can be legitimate projects. However, 80% of ICOs have turned to be scams in which high returns are promised.

Fake Exchanges

These are cryptocurrency exchanges that appear out of nowhere and after being active for a few months mysteriously vanish with customers’ funds.

Social Media Scams

Facebook Groups and Twitter Accounts with misleading information about giveaways and potential cryptocurrency Ponzi schemes.

Cloud-Based Mining Scams

Cloud-based cryptocurrency mining scams usually ask for people to agree to sign contracts and invest in Bitcoin mining data centers. It is quite hard to attest to these projects’ legitimacy.

Malware

Given the number of different software programs needed to interact with the blockchain ecosystem, it is of utmost importance to assure the legitimacy of our sources. The chances of finding malicious software is high.

Cloned Websites

Websites that have been entirely cloned to be used as a decoy and steal cryptocurrencies and users’ private information. Differences in these sites can be as subtle as possible. For example, instead of an “m”, an “n” could be used. Always check for HTTPS.

Ponzi, Pyramid, and Multi-level

Ponzi schemes generate revenue by making the newer investors pay for the compromises taken with the older investors. Pyramid or multilevel marketing schemes are often used in this regard.

Email Scams

Emails with fake information. These campaigns are used to collect private data from users. These are known as “phishing”

Pumps and Dumps

Pumps and dumps are groups that manipulate the market with fake news or high volumes to artificially increase an asset price. Usually, people unwittingly fall for this

Fake Support Team

Another type of phishing campaign. These groups pretend to be the support team of a company to access private and sensitive information, like wallet passwords or private keys.

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