Covid-19 has dramatically changed our way of life as it prohibits us from making physical interactions – making people go online to adapt to these significant changes.
Online transactions have gained popularity since the start of the pandemic due to the benefit it provides consumers – doing any transaction with only a press button on your device.
The utilization of cryptocurrency or also known as digital currency used in online trading, purchasing products, or even buying services. However, this virtual currency is not monitored by any governing bodies.
Compared to government-backed currency, the worth of cryptocurrencies is totally determined by supply and demand. This might result in violent fluctuations, which result in significant gains or losses for investors.
Furthermore, cryptocurrency transactions are subject to significantly less regulatory oversight than financial instruments such as equities, bonds, and mutual funds.
Global Fraud Protection recently discovered that starting from the year 2021 – when Covid 19 strikes – 14 Billion worth of US dollars was stolen from investors of cryptocurrencies due to fraud schemes.
Falling victim to these cryptocurrency fraud schemes might result in losing all your hard earned money – leaving you not just broke but also in debt.
In this article, we have provided all you need to know about cryptocurrency scams and ways to avoid them.
What You Need To Know About Cryptocurrency Scams
Cryptocurrency is one of the products of technological advancements that have made life easier, quicker, and more efficient than before – making anything controlled by just a single tap on your device.
However, scammers also see an opportunity to make cybercrimes as the internet makes anything accessible, resulting in increased victims of online scams.
There are several factors why cryptocurrency frauds are so prominent, and there are things you can do to lessen your odds of being a victim.
Warning Signs to Look Out For, Before Investing in Cryptocurrency
Money investment can be advantageous as it will ensure your future goals and plans. However, there is always a risk of losing your hard-earned money as cybercrimes are still lurking around any online platform.
Think twice before taking any risks while investing money. But, what are the things/signs that you must be aware of to avoid getting scammed?
Warning signs of online scams include:
The Promise of Guaranteed Returns
When a broker promises guaranteed returns on your transaction, consider it a red flag as no transaction can ensure your returns because crypto can go down and ups.
Every cryptocurrency must have a whitepaper since it is one of the most critical parts of an ICO. The whitepaper shall describe how the virtual currency was created and how it will function. Act cautiously if the whitepaper does not sound right – or worse, it doesn’t exist.
Any legitimate business company promotes itself accordingly. However, crypto scammers lure customers by aggressively advertising products — online media ads, sponsored influencers, offline engagement, and so on.
This is intended to reach as many individuals as possible in the shortest period – to generate money quickly; if the marketing for a crypto product appears heavy-handed or makes exaggerated promises without supporting evidence, pause and conduct more investigation.
How To Protect Yourself From Cryptocurrency Scams?
Online scamming is still prominent on any online platform for a reason – many people still lack knowledge on how to avoid these online scamming schemes.
Scams can happen to anyone, so keeping your guard is critical when money is involved.
Don’t let the scammers go free. Here are the techniques on how to protect yourself from scams.
Secure Your Wallet
A wallet featuring private keys is essential when investing in blockchain. If a company wants you to provide your keys to join an investment option, it’s most certainly a fraud. Keep your wallet keys to yourself.
Beware Of Social Media Marketing
Scammers frequently utilize the internet to spread their illegal schemes to generate a sense of credibility, fraudsters may utilize unauthorized photographs of celebrities or strong entrepreneurs, or they may guarantee prizes or free cash.
Promote a reasonable suspicion when you see cryptocurrency prospects on social media, and conduct your own research.
Always Report Fraud And Other Suspicious Activity
Falling victim to online scams can be stressful and heartbreaking. However, do not lose hope as getting your money back is possible. Don’t feel embarrassed about reporting a scam. Your report will assist us in disrupting scammers.
Immediately inform your bank after you:
- make use of your credit card
- transfer payment using the bank account
Crypto scammers frequently sell the information they have obtained to other crooks. To avoid future harm, updating your accounts and passwords is critical. If you are a victim of a media platform’s cryptocurrency hoax, you can report it to the appropriate social media network.
Based on where you reside, you can report scams to the applicable agency in your country — for example, the Federal Trade Commission in the United States. Other nations’ equivalents exist.