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Common Cryptocurrency Scams & How to Stay Safe
What are we waiting for let’s begin with types of Scam.
Cryptocurrency an unregulated form of currency is on rise and so are the scams related to it. A moneyback with a digital lock, vulnerable to be hacked but people don’t realize the fact and become a victim.
1. Fake Initial Coin Offering (ICOs)ICO is an unregulated means of raising funds for a new cryptocurrency venture, and it is one of the most common type of scams. A recent study shows 80% of ICOs conducted in 2023 were scams. Confido is one of the most popular scams detected in November 2023. This ICO raised $375,000 and soon after this it disappeared.
There was another ICO even bigger than Confido named Centra, $32M was raised from it and was supported by various celebrities. Centra too fall like Confido and its two founders were arrested in April 2023.
Signs of fake ICO:
Copied whitepaper
No clear disclosure of the team
Hurry in execution
Discrepancy in what is said and written
Overlooking hard facts and questions
No roadmap
To stay safe from these scams on needs to keep the above-mentioned signs in mind and should remember nothing is 100% true and they should never trust a thing that looks too good to be true.
2. Social Media FraudsWith Facebook, Twitter, Telegram gaining popularity, number of social media scams are also rising. Hackers usually impersonate as a known personality of cryptocurrency world and offer giveaways, like “send 1 ETH to this address and receive X amount back”. This is a trick to lure you in because no one gives money for free even it is cryptocurrency.
Therefore, to stay protected you need to gain knowledge about scammers trick and try not to fall from them.
3. Replicated Websites 4. Ad Scams 5. DNS HacksDNS hacks take place when traffic of a legitimate site is redirected to a fake one by altering DNS records. The two most popular victims of DNS hack Etherdelta, and MyEtherWallet that made users lose a substantial number of cryptocurrency present in their wallet.
One way to avoid these hacks to verify that the site you are visiting is SSL secured and certified. If SSL certificate does not match or you receive an error message while verifying them exit the site, it can be a scam.
Also Read : Crypto Mining Is The Next Big Threat After Ransomware
6. Email ScamsPopularly known as phishing attacks are fake email sent to the victim to redirect the user to fake websites. Doing so hackers try to steal personal information or funds. These scams usually take place during ICO crowd sales. All personal data about the target is collected from the previous ICO sale.
7. Ambiguous Support TeamsAnother form of phishing campaign is dubious support group. This means there are support groups who pretend to be helping you and to do so they you to give your personal information, deposits, or private key. Once they collect all this data scams take place.
8. Shady Exchanges and AppsWhen we talk about any kind of money exchange be it fiat or digital one should always trust well known exchanges like Binance, Huobi, Coinbase and Gemini. Also, they should use legitimate apps downloaded from trusted sources.
9. Cloud Mining ScamsCloud Mining has given another way to the hackers to easily conduct their fraudulent activities. A very popular case of this is MiningMax, a cloud-based mining service that asked people to invest $3,200 for daily ROIs and for $200 as referral commission this was definitely a scam and people were tricked that costs investors around $250 million.
10. Malware and Crypto MiningCrypto malware comes in two forms, as a malicious software installed by the user, designed to steal and the second form is crypto mining malware. The one that secretly uses computer power to mine cryptocurrency.
Both these form of malware attacks aren’t easily recognizable therefore if you see an increase in CPU/GPU usage or fan speed increases it definitely is a sign that someone is using your computer power. Therefore, one needs to be extremely cautious while installing any software that is dealing with crypto trade. Pay attention to the browser extension and check its authenticates on the app store and its source.
Must Read : Google Play: A Host For Cryptocurrency Malware
All these scams clearly show how hackers are after any form of money and they won’t leave any stone unturned to get their hands on to your data or money. Therefore, one needs to pay attention to what he does, applications he installs, uses, websites he visits and more important fan speed, CPU/GPU usage. All this will help stay safe from cryptocurrency scams.
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