Fraud Prevention: The cryptocurrency industry attracts both enthusiasm and risks from malicious actors, such as scams, frauds, and attacks. Understanding these dangers and how to protect yourself is essential for all participants.Scams involve deception through false promises of quick profits or by impersonating trusted entities. Frauds include Ponzi schemes and fake trading platforms. Attacks target technical vulnerabilities in exchanges and wallets.
Common Types of Scams
Investment Scams: These involve exaggerated promises of investment returns. Such schemes are often promoted through misleading ads on social media and other online platforms.
Romance Scams: Scammers use dating platforms to build trust-based relationships, later convincing victims to send cryptocurrency or invest in fake opportunities.
Phishing Scams: These attacks use fake emails or websites that mimic legitimate platforms to steal sensitive information such as private keys or passwords.
Fake Cryptocurrency Giveaways: Scammers promise high returns for cryptocurrencies sent to their wallets but keep the funds. These are promoted via social media and paid ads.
Deep Fake: Deep Fake technology uses artificial intelligence to create fake but highly realistic videos or images. In the crypto space, scammers may produce fake videos of influencers or well-known figures promoting scams or fake products. These clips are very convincing and can mislead even cautious users.
Government Impersonation Scams: Scammers pose as representatives of large companies or government agencies, claiming that problems exist which can only be solved by payments in cryptocurrency.
Fraud Prevention: How to Protect Yourself?
Use a non-custodial wallet: It is recommended to use non-custodial wallets, as they allow you to maintain full control over your private keys. Unlike custodial wallets, where third parties control the keys, non-custodial wallets provide greater security against unauthorized access.
Verify authenticity: Always ensure you are using official websites and apps. Check that the URL starts with “https\://” and that a padlock icon appears in the address bar.
Enable two-factor authentication (2FA): This adds an extra layer of security, even if your password is compromised.
Be skeptical of unsolicited offers: If you receive unexpected offers—whether promises of quick profits or urgent requests—take time to investigate. You can verify legitimacy by adding the word “scam” to your
Google search for those offers. This may reveal other people’s experiences or expert warnings.
Never share sensitive information: Do not disclose private keys, passwords, or other personal data to strangers. The legitimacy of any request for information can be verified with a quick internet search.
Google it: When you come across a new offer or service, add the word “scam” to your Google search to see if there are reports or warnings about possible fraud.
Educate yourself continuously: Follow crypto news and updates from trusted sources such as CoinDesk or Cointelegraph. Staying informed helps you recognize scam tactics more easily and avoid traps.
