3 of The Most Common Cryptocurrency Scams
The process of buying cryptocurrency and especially investing in bitcoin can be increasingly difficult and complicated. The fact that this whole buying process isn’t regulated in any ways is one of the best things for the scammers and online fraudsters to exploit.
So, if you’re planning to invest in a cryptocurrency like bitcoin, you can used some common sense and a very few tricks to easily detect a scam. You will be in a better position to avoid these scams when you know how they work.
The Old-School Phishing Scams
Phishing scams are already well known to many people, and the main reason of their fame is their usage in bank frauds.
In a phishing scam, you might be sent an email from a scammer that looks exactly like a regular email from your bank, crypto wallet or exchange. The email mostly contains a link that you’re requested to open, it redirects you to a webpage where you are requested to type in your wallet details. This way, if you end up typing all of the relevant details, the scammers would have everything needed to access your crypto wallet. So,
- Always double check the URL before opening them
- Never click on the fishy links you receive.
Some fraudsters take scamming a bit further by developing fake crypto wallets, fake exchanges and even by launching marketing campaigns to make themselves look like legit platforms. But beware! You must conduct a thorough research before investing.
This is probably the oldest scam on our list. But still when people receive a call from a scammer proclaiming to be an IRS officer, they end up giving their personal details.
There are many other scams like bitcoin loophole and other that are relatively newer in the market, so, keep yourself updated of the latest trends in the crypto industry if you have invested on bitcoin.