How to avoid falling victim to cryptocurrency scams

Over the past few years, cryptocurrency has become the new gold rush. Although the success of Bitcoin investors making thousands or even millions of dollars is difficult to replicate, it is still possible.

However, there is a serious drawback to the popularity of cryptocurrencies. Everyone wants to invest in digital currencies and make huge profits. Just then, the crook entered the scene. Statistics claim that crypto scams are the best way to lose money in crypto.

However, this does not mean that users should stop investing in cryptocurrencies entirely. We’ve prepared this article for you to help you spot and avoid crypto scams. Read on to identify the most common scams.

The most typical crypto scam
Before investing in a specific cryptocurrency, it is crucial to analyze the coin. For example, you can check out websites ICOholders have access to valuable cryptocurrency data.

However, it’s also important to learn more about the various common scams. If you know what to look for, you should be able to avoid scammers stealing your money. Here are the most popular scams of 2022.

Phishing scam
Phishing is one of the most popular ways to defraud Internet users. No wonder scammers use phishing in crypto scams. The idea of phishing is simple. It requires social engineering to trick users into obtaining their personal information.

Suppose the scammer obtains personal or financial information. They have access to your account! For example, one user lost over $50,000 to a phishing scam after providing his personal information on one of the most popular e-wallets.

Scammers tend to fake websites that look real trading platforms. Often, they use a popular platform but change the name so it''''s similar but not the same. The platform has a different address and its connection to the Internet is always insecure due to the absence of an SSL certificate.

Some scammers send potential victims emails containing links to these fraudulent platforms. Victims believed it was a legitimate company because it had a recognizable name. So they click on the link and enter their financial information, such as private keys that give them access to the cryptocurrency.

What happens next: The scammer logs into the victim''''s account and sends cryptocurrency to their wallet. From that point on, it is impossible to return your funds. Therefore, avoid clicking links in emails. Always make sure you are using a legitimate website and not a fraudulent one.

Crypto market manipulation
Often, criminal groups purchase specific types of cryptocurrencies. They then go to social media and start promoting the coin to attract investors’ attention. People started buying the coin so that its value would increase. The scammer then sells the currency at a higher price.

It''''s a stock boom and a crash. When this kind of scheme is combined with a romance scam, see this story.

investment scam
to be honest. We all want to find the “next Bitcoin”. This means that most of us want to invest in a cryptocurrency that will skyrocket in price Bitcoin. This is why some of us take too much risk when investing in unknown coins in the hope that it will skyrocket in price in the future.

Scammers take advantage of these people''''s desire to invest. They fake projects that promise to change the world. Naturally, people believe that investing in these projects will benefit them in the future when the value of the coins increases. Unfortunately, this will never happen. That''''s why it''''s always crucial to check the background of companies that offer substantial profits.

Mobile app scams
Another scam is similar to phishing. Scammers fake mobile apps that impersonate well-known cryptocurrency trading platforms. Unsuspecting users downloaded and installed the app without knowing it was a fraud. The app then requests a login and password to access the cryptocurrency.

Another common result is getting your phone infected with malware that copies all of your data when you log into different apps, including online banking apps.

mining scam
The most common situation is when a user s a mining pool or uses cloud mining. There are fees for any mining pool, but you can still earn cryptocurrency for the efforts of pooled miners. The fake swimming pool charges a fee and then disappears over the horizon.

Ruminant mining is similar. Legitimate websites require you to pay a specific number of coins, which miners mine for you within a stipulated time. However, fake websites will take your money without giving you the cryptocurrency. You can see more details about this type of scam here.

Technical Support Simulation
Banks and other financial institutions continually remind users that bank employees never ask customers to reveal personal information, such as passwords and logins, to user accounts. The same rules apply to trading platform technical support.

So, how does the scam work? Scammers contact you and pretend to be a support team member. This person asks for your private key, login, password, or other data (or all of these details).

Scammers can give any reason - if you don''''t provide personal data so employees can verify your account, your account may be blocked. Scammers get very creative when it comes to the reasons why users should let them access their accounts.

If you provide this data, your password will be lost. The best thing to do is to take a screenshot and report the situation to the actual support team.

Fake gifts or gifts
Another common practice used by scammers is to offer freebies. Sounds good, right? Won''''t. Scammers convince users to invest in cryptocurrencies or send coins to a specific wallet. The promise is a substantial return on a small investment. In effect, the user gains nothing but loses money.

Key takeaways
Make sure to never share your financial data with anyone. If a scammer obtains your private key, they gain access to your crypto wallet or trading platform. Additionally, it is crucial to always double and triple check the company or project you are investing in to avoid being scammed.

Before investing in cryptocurrencies, please research and learn more about how cryptocurrencies work. These mentioned simple rules should keep your money safe.