Protecting Your Cryptocurrencies and Avoiding Scams
Due to the irreversible nature of crypto currency 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.
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 the web and mobile app wallets downloaded from iTunes or Google Play Store.
Initial Coin Offerings (ICO) can be legitimate projects. However, 80% of ICOs have become scams in which high returns are promised.
These cryptocurrency exchanges appear out of nowhere and mysteriously vanish with customers' funds after being active for a few months.
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 pretty hard to attest to these projects' legitimacy.
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 are high.
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 multi-level marketing schemes are often used in this regard.
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 manipulating the market with fake news or high volumes to increase an asset price artificially. Usually, people unwittingly fall for this.
Fake Support Team
Another type of phishing campaign. These groups pretend to be a company's support team to access private and sensitive information, like wallet passwords or private keys.
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