Crypto imposter scams are a serious issue. Whether it is Bitcoin or any other type of cryptocurrency, Bitcoin scam can cost you thousands of dollars if you fall victim to them. In this blog post, we will discuss how to identify and avoid common cryptocurrency imposter scams so that your cryptocurrency investments stay protected!
Things to consider to stay protected from crypto scams
- When presented with an opportunity to invest in cryptocurrency or any other type of new blockchain-based project, always be suspicious.
- The person promoting this investment might not have all their facts straight and will likely seek out anyone who is willing enough for themselves even if they don’t know what’s going on yet because there are easy ways that scammers can take advantage – like telling you about some great project before its time comes out (when no one has heard anything).
- Don’t let yourself get caught looking back at old posts online trying to figure whether someone was telling lies then; instead – think critically now!
- Don’t fall for crypto imposter scams! Avoid sharing your private key or the seed phrase to your crypto wallet.
- Store your private key and seed phrase in an isolated location, aka cold storage – like on paper wallets with QR codes instead of strings of letters and numbers (which can be written down).
- It’s always a good idea to enable two-factor authentication whenever possible, but be aware that this isn’t an ironclad solution.
- The recent hack of Coinbase proves how critical it can be for your security if you don’t use some other protection method in addition!
- The best way to avoid being scammed is by making sure you’re on the right site. To do this, check for any suspicious URLs or characters in your browser’s address bar and make sure that there are no spelling errors when typing in a new web page address before submitting anything online!
- It’s a good idea to first check if the company conducting an offer has any reputation or background related to cryptocurrencies.
- The offers requiring an up-front fee are red flags, especially if the fee has to be in cryptocurrency.
Identifying Crypto Scams
Scams are a dime-a-dozen but they come in many different flavors. Some crypto scams target people looking to invest, while others rely on spreading digital cash around so that you don’t have enough evidence for them when investigating the theft of your money (or anything else).
Beware of offers with “once in lifetime” investment opportunity kind of slogans. While trying to sell you hard on their product wrapped with a sense of scarcity. And then vanish into thin air with your money.
There are also crypto scams similar to pyramid schemes. Such schemes would require you to pay in crypto in order to be eligible to recruit other people in their scheme. This way the scammers entice their victims with lucrative profit offers.
You may come across so-called “investment managers” offering attractive profits for letting them manage your crypto investment.
Always do thorough research to avoid falling prey to such investment scams.
Giveaway scams are a dime-a-dozen on social media. They use the names of celebrities and influencers to get your money, but if it seems too good or weird then don’t do anything!
Crypto Phishing Scams
Similar to conventional phishing where scammers get access to financial or other sensitive login credentials, crypto phishing scammers attempt to get information to your crypto wallet.
The scammer may impersonate “technical support” to get your crypto wallet information.
These scammers may impersonate the representatives of fake or even legit companies.
Always avoid sharing your sensitive information with people making unsought contact regarding your assets.
Loader/scam artists are targeting new crypto investors by offering high-paying jobs or profits in return for access to wallets or credit card numbers.
Instead, these criminals steal all your funds and run off with them- leaving you on the hook for any fraudulent transactions made using personal information promised during investment pitches!
If you come across any of these crypto scams or think that you have been the victim, contact either The FTC -Federal Trade Commission- which has jurisdiction over advertising and financial-related crimes such as frauds committed online.
It’s also important to report cases where people are spreading fake giveaways on Twitter so they can be taken down quickly before anyone else falls victim!