Scams in financial institutions have always been there, and we often see such big frauds in the news headlines. With cryptocurrency becoming quite popular, many investors are moving towards crypto investment as an alternative to fiat currencies. While technology made digital currency, aka cryptocurrency, possible, hackers and fraudsters take the same technology in hand to steal people’s crypto.
Since cryptocurrencies are decentralized and no centralized authority monitors them, hackers take that advantage and use various tactics to steal crypto. Scammers and hackers go beyond the extreme and use various tactics to lure you and make you share your personal information.
Many crypto scammers target investors with tailored messages based on the likes and interests they share online. It could be social media, job search sites, or anywhere online.
Hackers do their research, find all the information regarding the victim, and target them with relevant messages. Let’s see the most used tactics of these hackers. Being aware of these tactics will help you avoid such messages and keep hackers at bay.
Scammers often target people by alluring them with business opportunities. They target people by promising to double their crypto or helping them grow rich. There is no guaranteed strategy to get overnight exceptional returns in crypto or any other investments, for that matter. Thus, if someone brings you such business opportunities, it is better to refrain from responding. Do not share personal information or click any links they send.
Hackers go to any extent to access your cryptocurrencies. Blackmailing is one of the cheap tactics they use to steal your cryptos. Often, hackers target victims with their browsing history, sensitive personal information, photos, videos, etc, and threaten them to make those details public if they don’t listen to them. Often, they demand private keys or cryptocurrencies. It is highly recommended to approach the FBI in such cases rather than panicking and fulfilling their demands.
Fraudsters create fake job listings to attract victims to their scams. The jobs will generally be in the crypto mining industry. These scammers often demand users to pay in cryptocurrencies to get the job. However, scammers can get creative and go to any extent to make additional payments. Users should be watchful before responding to any job opportunities that ask them to pay.
Phishing is the most encountered scam by victims in the crypto industry. Scammers often pretend to be an authoritative government agency or a reputed organization, sending an email with links that lead the user to their website. The website often directs users to enter the private keys. Once hackers have the private keys, they immediately steal the victim’s cryptocurrencies.
Scammers disguise themselves as influencers and celebrities to lure victims. They post big money, bumper prices, or free giveaway advertisements to attract attention. Once they get a response from victims, they often demand you to do something to avail of the gifts, which is a typical scam.
Luckily, spotting fake crypto mining websites is pretty straightforward. You just need to look for specific details. Authorized cryptocurrency sites list all the details regarding their blockchain, algorithm, the technology behind and more. Look for the following information when you bump into a crypto mining website.
Crypto mining websites publish a white paper describing the protocols, blockchain, and technology behind the specific cryptocurrency. It is published for the general public to understand the cryptocurrency and its functionalities, allowing users to pick the most appropriate cryptocurrency.
On the flip side, fake cryptocurrencies publish poorly written articles that don’t back the technology or features behind it. You should doubt the website’s credibility if there is no transparency and genuineness in the information mentioned in the white paper.
Any legitimate crypto mining website would list all the information regarding the team behind its cryptocurrency. Even if it is an open-source cryptocurrency, though there may not be developers’ names, you can find all its technical details on GitHub and forums like Discord. So, it is probably fake if you can’t find the crypto’s details anywhere.
Valid cryptocurrencies are for a purpose. Those companies often release information about the technology, functionalities, upgrades, and more. No company will boast about its cryptocurrency and lure people to invest. So, if the marketing sounds so direct and gimmick, stay away. Legitimate crypto businesses focus on companies that leverage blockchain technology to serve their customers.
Here are some potential scam signs that you should be aware of. If you encounter any of the following things, do not respond.
Firstly, do not panic. There are several government agencies and organizations out there to help victims. You can reach any of the following agencies in case of crypto mining scams.
There are some things to evaluate when choosing a crypto mining company, which will help you avoid potential crypto mining scams and make optimal benefit from the crypto industry.
All you need to do is stay vigilant and aware of common crypto mining scams. Thus, you can prevent yourself from falling into such scams.
Crypto mining scams are more common than we think. Hackers use various tactics to cheat people and their hard-earned cryptocurrencies. It’s up to us to stay vigilant and protect our cryptos by following the best practices. The blog has highlighted the common crypto mining scams, how to spot them, what to do if scammed, and tips to stay safe from such scams. Read and share with your fellow crypto enthusiasts. Let’s make crypto mining a safe space for everyone and make the most of this fantastic field.
The Ponzi scheme is an investment fraud that promises huge returns to investors with little risk. The scheme shells out money to existing investors by collecting money from new investors.
~ Avoid clicking suspicious links.
~ Use a private internet connection.
~ Do not fall for unrealistic returns.
~ Never share private keys with anyone.
Private keys are often a string of letters and numbers that work like a password to access the cryptocurrency.