The hype in the crypto market is accounting for more rising crypto scams. The crypto market is offering opportunities for cyber scammers to loot millions from crypto investors. As per CNBC reports, there has been a marked 79% rise in crimes related to crypto from 2020. As far as the strategies are concerned, the cheaters are mainly targeting confidential information.
Besides seeking information, they even create fake crypto websites and lure people into investing. After you invest a huge amount, you will never be able to access the site anyone.
Here you can get details on the common crypto scams in crypto and how to detect them to safeguard your hard-earned money.
Top scams in the crypto world
Often people report some common scams in crypto, so here you can check it out and spread awareness among those who intend to invest in digital currency.
- Hacking private information
This is perhaps the most common scam whereby a scammer will try to collect private information related to a crypto wallet. Scammers send emails to crypto investors and on clicking the link, they receive your wallet details. Once they enter details, the hackers transfer money into their accounts.
- Fraud coin hype on social media
The fraudsters utilize social media platforms like Facebook, Twitter or WhatsApp to spread fake news regarding hype in a token. Some naïve traders ready to earn millions fall prey to such tricks and end up losing their money. Once the trader or investor buys that token, scammers immediately reduce its price within minutes.
- Scamming through dating apps
As per reports, cybercriminals looted almost $139 million through dating apps. People in search of partners on dating apps come under the scanner of scammers. The fraudsters try connecting with people seeking a partner on any dating platform. After a person starts trusting, the scammer allures them to invest in digital currency and gives them a fake website address.
- Extorting money through blackmailing
Blackmailing is another bait a fraudster uses. They sent emails containing records of obscene websites the victim checked and threatened to leak. Blackmailers will ask for security keys or some confidential information regarding your crypto wallet and extort it.
Red flags to spot crypto scam
To safeguard your hard-earned money against scammers, a certain amount of caution is necessary on your part. There are certain ways to detect whether it’s a scam or not, do check out the warning signs and take appropriate action.
Extravagant promotional tactics
A possible warning sign of forgery is when you find a website excessively marketing its tokens or coins on different social media platforms. Generally, crypto websites don’t involve in such extravagant promotional activities. So, on finding a website posting ads on a wide range of channels, conduct adequate research before investing.
Promising high returns
As you all must be aware that financial investments are volatile and subject to market risks, no one can guarantee your returns. However, if it’s a fraudulent source, they will surely bait you by making false claims of offering risk-free high returns. Take such offers as a red signal and don’t take a step forward, instead inform the relevant authorities about it.
Anonymous team members
Generally, a valid and reliable business reveals the names of key people working with them. It allows a person to thoroughly research the key people involved before investing in digital currency. However, in fake businesses, you will find it hard to gather any information regarding the people associated with the business, which is a signal for you to stop and rethink.
To save your capital from the notorious cyber scammers, take better charge of sensitive informstion. You should never share any private details of your crypto wallet with an unknown source. It’s wise to conduct thorough research on popular crypto platforms or take recommendations from people already invested in crypto and protect your money against scammers.
