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How to protect against cryptocurrency scams

It is undeniable that cryptocurrency is becoming more popular throughout the world. More and more people are jumping on the cryptocurrency bandwagon for a variety of reasons since some investors are reaping unimaginable profits.

To begin with, it gives users control over their assets and transactions. Due to the absence of an authority that governs cryptocurrency channels, users can suffer scams and fall prey to fraudsters. In the long run, the increasing popularity of cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin, as well as the increased value of these cryptocurrencies have resulted in a significant increase in fraud risk.

Here are some methods to identify and counter some of the most common crypto fraud schemes:

  • Investment Scams

If someone contacts you with an investment opportunity that is a “once in a lifetime” deal, you might want to ignore him. A lot of companies and apps promise you that their product or service is the next big thing and that getting in early can make you rich. Your money will disappear with them after they sell you hard on their product and couple that pitch with the notion of urgency.

Scammers sometimes present themselves as “investment managers” offering to help you grow your assets by investing them. They’ll set up an account for your cryptocurrency that they claim is an investment account, but you won’t be able to access it unless you fork over some money.

Some scams introduce new cryptocurrency coins or tokens, claiming that they solve some critical unmet market need. A salesperson will sell you on their product and ask you to invest in their coin with the promise of a hundredfold return later on, then disappear. An excellent example of this is the Squid Game-based coin.

If you are considering investing, check out the company’s website to learn about how they protect customers. Grammar errors and typos can indicate a scam, so be on the lookout for them. Look for public reviews that are verified. Using the terms “review” or “scam” when searching for the company name is a good place to start.

  • Giveaway Scams

A lot of celebrities and public figures talk about cryptocurrency on their social media accounts, so scammers will set up fake giveaways using their likenesses and names.

In some cases, they may even reply to the giveaway post with other fake accounts to make it appear legitimate.

It’s the same thing that happened when hackers used bogus crypto promotions to hack into well-known Twitter accounts. Beware of strange promotions that seem too good to be true.

Don’t respond to messages on social media or through messaging apps like Telegram that ask for crypto. You will never receive an unsolicited message from a reputable company asking for payment or requesting login information.

  • Extortion Scams

You may receive notifications from scammers claiming they have embarrassing or incriminating information about you. If you do not send them a cryptocurrency payment, the information will be released.

You might be shown something obtained from a data breach, such as an old password, to make the scam seem more convincing. This is often all the person has, and they are simply bluffing for you to give in to their demands. If this happens, you should consider it criminal extortion and take action.

The first step is to mark the email as spam. Afterward, you can file a complaint with the FBI’s Internet Crime Complaint Center (IC3) and your local authorities. Make sure every computer or device you use is scanned for malware. You should immediately change any password used anywhere you are displaying the scammer’s password. This type of scam message is designed to scare you, hence its name. It is a scam. Do not fall for it.

To avoid these scams, here are things you need to do:

  • To be safe, make sure to check multiple times before you sign up for a deal that seems too good to be true. The chances of buying into a scam are high if an offer promises ten times your money back without providing any explanation. You should avoid such offers and stay safe.
  • The Web is also full of fake cryptocurrency apps that closely resemble legitimate apps. To identify fake apps from real ones, look for ratings, reviews, and also the authenticity of logos.
  • Be sure to double-check each website and its URL. Even in the world of cryptocurrencies, spoofing, which is one of the most common technological attacks, is commonplace. Ensure you engage in and conduct transactions only on approved and recognized platforms. Make sure you are not being redirected to a site that you did not intend to visit after following a link from a credible source or crypto expert.
  • In addition, fraudsters often fool users by sending phishing emails disguised as an official communique from a credible cryptocurrency site or exchange. These emails often contain tempting offers and deals to entice users.
  • Another method in which fraudsters defraud users is by pretending to be technical support.

If you are receiving tech support or troubleshooting from someone, please verify their phone number, social media handle, or email address.

The decentralization of cryptocurrencies is a unique factor that has opened up avenues for these scams. This, however, does not discredit the abundant opportunities it has brought to this civilization. The best move now is to secure your funds and know-how to evade these scams.

If peradventure, you have lost your funds through any form of fraud, you can contact Duo labs. Duo Labs are a group of professionals that major in hacking services, database security, and cryptocurrency funds recovery. They have a track record of over 400 major cryptocurrency funds recovery. Contact them today for your fund recovery.

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