The world of crypto is still rising as people adjust to online transactions. Because of these, various fraudsters are also evolving. Can you avoid it?
The crypto industry rises as many people become more interested. Because of these, many individuals are now spending huge amounts of money just to invest in Bitcoin, Dogecoin, Ethereum, and other rising digital currencies.
And now, experts are warning that hackers and other online thieves are also rising just to fool and steal from unsuspecting investors. On May 22nd, a crypto finance project called DeFi100 posted a message to its website: “We scammed you guys and you can’t do shit about it. HA HA. All you moon bois have been scammed and you can’t do shit about it.”
A popular anonymous crypto-tracking Twitter account called Mr. Whale estimated that DeFi100 had run off with $32 million. On the other hand, various sources, especially reliable publishing websites, such as Yahoo Finance, also released an estimation of the stolen money.
An anonymous crypto expert said that “DeFi100 was a very small project, and we were not holding any investors’ funds, so there are no questions of scamming people or running away with their funds.”
DeFi100’s problems are a small part of the picture, but they’re a reminder of the dangers of the ongoing crypto boom. Despite billions of dollars pouring into space in recent months, there’s still little recourse when investments turn out to be scams.
How To Avoid Scams and Other Fraudulent Acts?
Although DeFi100 showed how easy it is to fool people, as long as you have a group of hacking experts and advanced tools, there are still some ways you can practice that would help you avoid these cryptocurrency scams. Here are some of them that you should know;
- Never give support staff (or anyone else for that matter) remote access to your machine. This effectively gives the scammer full access to your computer, online financial accounts, and digital life.
- Never give out your 2FA (2-Factor Authentication) security codes or passwords. Coinbase staff will never ask you to share sensitive authentication credentials.
- Never accept outbound calls asking for your confidential personal information. Be aware that scammers can spoof legitimate phone numbers when conducting outbound calls.
- Never send cryptocurrency to giveaways under the guise of address verification.
- Be skeptical of all giveaways and offers found on social media. Do not trust screenshots in reply messages as images can be forged and altered.
- Use your favorite search engine to do research on any entity soliciting you on social media. If the offer sounds too good to be true, it probably is.
- Check the giveaway URL to make sure it directs you to Coinbase.com.
- Report any phishing attempts or scams.
Since you already know how to avoid these cryptocurrency scams and hacks, you should also know different types of them;
- Loader or Load-up Scams
- Technical Support and Impersonation Scams
- Telegram Scams
- Giveaway Scams
- Employment Scams
- Investment Scams
- Extortion Scams