Tech
How to recognize a crypto scam
Even if you don’t invest in cryptocurrencies like Bitcoin and Dogecoin, you can still be a victim of a crypto scam. These cybercriminals range from lone scammers in your locality to North Korean state-backed hackers. Many cryptocurrency scammers target amateur traders who may not understand the technology behind blockchains, or even everyday internet users with zero cryptocurrency holdings.
To safeguard yourself and your finances, you don’t need to be a blockchain prodigy or cybersecurity expert. Instead, learning to recognize some warning signs and common criminal patterns can prevent you from losing your life savings.
Remember that a crypto scam can reach you through the digital channels you use every day, such as WhatsApp or Signal (messaging apps), Facebook or X (social media apps), and even Tinder or Bumble (dating apps).
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Tactic 1: Free prizes
A stranger sends you a message on a social media channel, claiming that you have won money and that you should click on a link to claim your prize. The sender may then ask you to pay a small sum, provide your bank details, create a digital wallet, share an OTP, or invest in a token to receive huge returns. Never accept such offers or click on the links provided. Don’t accept “airdropped” gifts or tokens either, even if the risk is minimal.
Tactic 2: Romance scams
When matching with a romantic partner online, maintain a polite and casual attitude. Be careful if a new date challenges you about your finances or pushes you to invest in specific assets. A romance scammer might sweetly encourage you to buy coins/tokens that he supports or he might promise to share his earnings with you. They may also refuse to meet you in person for a variety of reasons. Immediately stop all communications, report the profile to law enforcement, and do not send any more money or information to the individual.
Some romance scammers are actually victims of human trafficking who are forced by their slave masters to deceive people all over the world, so it is crucial to report such incidents.
Tactic 3: Online Advertising
Crypto scam campaigns could reach you via online advertisements or paid articles placed in established news websites and social media platforms such as X (formerly Twitter). You should immediately distrust any trending cryptocurrency project that does not reveal information about its founders, such as pictures, professional qualifications, base of operations, regulatory licenses, or social media channels. A scam cryptocurrency project’s website may contain spelling errors and grammatical errors, while any images of team leaders may appear to be AI-generated and lack contact information. Even if the crypto project is backed by a celebrityit may not be legitimate.
Tactic 4: Very similar branding
A scam coin or cryptocurrency asset may be attempting to copy the name and ticker of a more popular cryptocurrency, such as Dogecoin [D0GE] instead of real Dogecoin [DOGE]. Such campaigns will invite you to invest in these resources, perhaps promising more flexible Know-Your-Client (KYC) requirements and greater benefits. Never conduct cryptocurrency trades through unregulated cryptocurrency exchanges or decentralized lending platforms if you are not already an experienced trader.
If you want to invest in cryptocurrencies but have no technical knowledge about blockchain, talk to a financial advisor or your banker first.
Tactic 5: Offers of help
When you complain on social media about a company’s poor service, a blocked account, an undelivered food order, problems with your bank, or computer problems, you’ll soon see a number of bot-like accounts with profile pictures generics who offer to help you. They may ask you to send them a private message for assistance or advise you to contact a supposed “expert” who will solve your problem. Accepting this offer will likely put your finances and data security at risk. When facing problems with a company, approach its official representatives directly and never accept assistance from intermediaries. Try to keep such interactions private whenever possible.
How to protect yourself from a cryptocurrency scammer:
Never accept online giveaways, cryptocurrency “airdrops,” social media reward offers, cryptocurrency giveaways, free NFTs, or investment deals that are too good to be true
Report dating app profiles if their users encourage you to invest in specific virtual assets or send you payment links
Keep in mind that crypto scam projects can also acquire advertising space via reputable news websites or social media platforms
Don’t invest in cryptocurrencies if you’re not tech savvy or don’t have guidance from your banker
Check cryptocurrency investment websites to make sure there are no spelling/grammatical errors and look for verifiable information or contact details
If you have problems with a company’s customer service, try to resolve the issue privately and only through official channels
Do not share your bank account/Aadhaar/PAN/passport/debit card/credit card details in exchange for cash or cryptocurrencies
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