Cryptocurrency is rising again. Here’s how to spot scams and keep your wallet safe

Cryptocurrency markets have seen a rebound following the presidential election, with the emergence of coins such as Bitcoin, Ethereum, and cryptocurrencies. Dogecoin Leading the charge. The price of one bitcoin, for example, recently It has exceeded $100,000 For the first time.

Experts attribute this trend to several factors, including President-elect Donald Trump’s positive comments about cryptocurrencies during the election campaign, renewed interest from retail investors and increased institutional adoption.

Cryptocurrencies are notoriously volatile. The value of digital assets can fluctuate dramatically within days or hours, making them an exciting, high-risk investment. But there is another dangerous side of the cryptocurrency boom: Crypto scams are back.

Cryptocurrency represents a golden opportunity for fraudsters. The cryptocurrency market is mostly unregulated, and once a transaction is made, it is almost impossible to reverse it. This means that if a scammer successfully uses your cryptocurrencies, there is not much you can do to get your money back.

If you are actively investing in cryptocurrencies or monitoring digital currencies, make sure you know how to spot get-rich-quick schemes and other scams.

The most important cryptocurrency scams that you should beware of

The high potential gains of cryptocurrencies attract large numbers of scammers. In 2023, cryptocurrency scams cost victims $5.6 billion, According to the FBI. These are some examples of common cryptocurrency scams.

Phishing attempts

A phishing scam attempts to get you to reveal sensitive personal or financial information by sending you a fraudulent email, text message, or phone call.

Cryptocurrency phishing scams take many forms. For example, it’s common for bad actors to impersonate legitimate exchanges to try to trick you into sharing your information Private key – A unique passcode that gives you access to your encryption – by asking you to click a link included in a text message or email.

Other examples of cryptocurrency-related phishing attempts: According to the Federal Trade Commissionincludes:

• Celebrities who contact you and tell you about the opportunity to acquire cryptocurrency. This happens on social media, but it’s unlikely that an actual celebrity will contact you with a business or investment opportunity.
• An investment manager offers to handle your investment portfolio. They promise to increase your funds, but only if you transfer your cryptocurrencies to them first.
• A new company or organization enters the cryptocurrency space. You may be contacted by a scammer claiming that a company has delved into the cryptocurrency space and is offering a new currency or token. If this is true, it will be widely reported in the media.

Social engineering

Scammers can also build deep connections with you and then try to manipulate your emotions to force you to make a hasty decision, such as getting into a new type of cryptocurrency.

“In a bull market, scammers are driven by human greed, promising high returns and exploiting the fear of missing out,” said Nick Percoco, chief security officer at cryptocurrency exchange Kraken. “In a bear market, they play on fears that crypto assets are at risk.” .

Percoco added that investors should be wary of high-pressure tactics. “Scammers know that if you don’t do something in the end, they will lose. Take your time and look for opportunities carefully.”

Pull the rug and fake codes

Developers often create new tokens designed to look like legitimate cryptocurrencies to attract investors to buy cryptocurrencies. Once you make your purchase, the scammer takes your money and disappears, leaving you with nothing but a fake code.

This scam often occurs when bad actors encourage investors to act quickly to enter into a new crypto project before prices rise. If you are not sure about the legitimacy of a token, be sure to research the asset, its website, project founders, and cryptocurrency transaction activity. If there is no website or the creators of the project are unknown, this may indicate a high risk.

Bitcoin ATM Scams

In this scam, a cybercriminal tries to scam you by pretending to be a law enforcement or financial institution. The scammer may tell you that you need to pay a fine or that the bill is past due. To avoid legal action, the scammer asks you to use a Bitcoin ATM to send him money.

Legitimate entities will never Request payment via Bitcoin ATM. You should completely ignore such requests.

What if I fall for a cryptocurrency scam?

If you fall victim to a cryptocurrency scam, you are unlikely to get your money back. Part of what makes these scams attractive to cybercriminals is that cryptocurrency transactions are irreversible. It is also difficult to track the money after it is sent because scammers can transfer it to any part of the world.

“Investors should exercise caution and conduct thorough research before engaging with any cryptocurrency platform or investment opportunity,” said Jacqueline Cooper, CEO of the Chartered Blockchain Institute.

However, you should still report the scam to help catch the hacker and help others avoid the same fate. To report a cryptocurrency fraudulent contact:

• FBI in www.ic3.gov.
• Federal Trade Commission in ReportFraud.ftc.gov
• Your local district attorney’s office.
• If possible, the legitimate cryptocurrency exchange you used to send funds.

Although most scams aim to steal cryptocurrencies, they can also put your personal information at risk. Social engineering tactics often extract sensitive details, which can lead to… Identity theft and financial fraud more broadly.

It is considered Freeze your credit Free with Experian, TransUnion and Equifax To prevent scammers from opening new lines of credit in your name.

Education is your best defense against cryptocurrency scams

If you choose to invest in cryptocurrencies, you should only use… Verified cryptocurrency exchanges. Experts suggest only investing what you are comfortable losing.

Never click on any links sent to you via email, text, or on social media and never give up your personally identifiable information on a whim. If something feels uncomfortable and you’re under pressure to make a quick decision, consider that a red flag. Always take your time when making any financial decisions.

By staying informed, verifying platforms, and protecting your personal information, you can confidently thwart cryptocurrency scams and navigate the world of cryptocurrency with reduced risk.

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