With the rise of technology, scammers have new ways to trick victims online, and cryptocurrency is no exemption!
Before you decide to invest, you should always do your due diligence. Here are four cryptocurrency scams that every newbie should watch out for.
Phoney Websites
Even if you have a lot of expertise in the cryptocurrency business, you can still fall victim to scammers by mistakenly clicking on a link and landing on a fake website set up by scammers. A surprising number of websites closely resemble good startup companies or projects. When visiting a website, the first thing you should look for is the small lock icon near the URL bar, which should contain “HTTPS,” indicating the connection is encrypted.
Fake marketing and spelling and grammar mistakes are also red flags. Thus, always double-check the websites even if they are quite reputable like Binance or Bitcoin Loophole.
Fake Mobile Applications
Another way that scammers use to deceive their victims is through fraudulent mobile applications that can be downloaded from the Apple App Store or Google Play. Even though stakeholders often notice such fake apps quickly and take them down, these apps have already affected people. Past data show that utility apps can steal from a person between $260 and $2,500… and much more.
Every newbie trader should understand how to detect fake cryptocurrency mobile apps to avoid being scammed. Make sure to check for reviews, misspellings and inauthentic looks, which consist of unusual logos and colours. If you suspect any of these, reconsider downloading the mobile app.
Social Media Scams
If you follow celebrities on social media, there’s no guarantee that you’re not following a hoax account. Malicious bots are widespread, and fake accounts are everywhere. Thus, make sure to research messages or offers that come from social media sites such as Facebook or Twitter.
Don’t trust accounts claiming that celebs are giving away cryptos. If someone online asks for even a tiny amount of your cryptocurrency, don’t give your details away, as there’s a great chance that you can never get your money back. You have to be extra careful.
Scam Emails
Email marketing is one of the most powerful tools in today’s business practices. Sadly, many scammers trick users via phishing emails. Be mindful! Is the email address legitimate? Is there anything that you can do to verify if the email is directly from the company it claims to be?
Alarmingly, during the current crisis, scammers have turned to a new fraudulent activity: they may abuse governmental names to promote loans, offer social help or demand payments. Make sure to protect your email and personal details online.
Conclusion
Unfortunately, there are many methods that scammers use: from hacking unsecured computing systems to promoting fake ICOs and creating phoney sites and apps.
Always double-check the tools you use, and remember that even if you manage to avoid falling victim to crypto scams, cryptocurrency trading remains risky!
