Protect Yourself And Others From Falling Victim To Crypto Scams

The emergence of blockchain technology has generated a flurry of activity worldwide, with people using cryptocurrencies for cross-border transactions and as speculative investments. In the wake of Bitcoin’s success, countless digital tokens have emerged, issued as general currency, for specific purposes (e.g., cloud storage), and as substitutes for traditional shares in companies. Bitcoin is the pioneer, but Ethereum advances multiple applications and use cases, such as NFTs and DeFi. Ethereum will continue to lag in the coming weeks, but it could overcome Bitcoin in market capitalization by 2029, so there’s no better time than now to learn how to buy ETH. 

Malicious actors are always finding new ways to steal money, and cryptocurrency is custom-made for today’s scammers, as it’s hard to trade, decentralized, and anonymous. The most vulnerable victims are university-educated, employed full-time people because they’re frequently overconfident, which more often than not leads to suboptimal decisions. If you think you’re too savvy to fall victim to a crypto scam, your ambition will expose you to even greater risks. Nobody is immune from fraud. Everyone is a potential target. 

Spot A Crypto Scam In The Nick Of Time 

You can’t live in a constant state of paranoia, and even if you do, it’ll destroy the quality of your life, so it’s best to be prepared. In most cases of financial fraud, victims are caught off guard because they fail to recognize the tell-tale signs that might have saved them from being scammed and exploited. Not taking action is just as dangerous as acting hastily. Don’t pick up calls from unknown numbers, even if your caller ID identifies the incoming caller, but if you answer your phone without giving a second thought, watch your next step. 

Threat actors will try to make you move cryptocurrency by pretending your funds are at risk, or you’re about to let slip a once-in-a-lifetime deal. Fraudsters are always changing their tactics to exploit vulnerabilities, but most scams fall into one of the following categories: 

• The romance fraudster: A con artist reaches out to you on a dating app or social media platform and uses the illusion of a romantic relationship (or close relationship) to gain your affection and trust. Things quickly escalate, with financial losses for you. 

• The friend impersonator: A scammer is most likely to pose as your friend because your instinct is to jump in with both feet when someone needs you. The swindler compromises your friends’ social media accounts so you’re convinced you’re talking to a trusted person and are more willing to hand over money; maybe they need you to pay bail.  

• The business opportunity:  You receive an offer to become financially independent or to generate extra income and are directed to a fraudulent site. Needless to say, you’re pushed to transfer crypto out of your current exchange. You’ll understand the money can’t be withdrawn only when it’s too late. 

• The fishing ads: There are many types of scam ads, such as giveaways, investment offers, and phishing scams. If you come across such pop-ups, think twice before clicking because the ads can be weaponized by hackers. Suppose they’re not. In that case, you provide fraudsters with your contact information. 

Toughen Up Your Security Settings  

Online fraud is prevalent, so it makes sense to check your security settings to ensure they’re at an appropriate level. If threat actors access your email and social media profiles, they can use your name and face without your knowledge to promote scams or trick others into clicking on malware-laced links, so be certain you have strong passwords. Implementing two-factor authentication provides an added layer of security and decreases the chance of unauthorized access. The only drawback is that it requires access to a mobile device or PC. 

Keep Your Crypto In Offline Or Cold Storage 

Cryptocurrency wallets come in all shapes and sizes, but not all of them have the same features. Use a hardware wallet to interact with the blockchain and manage your account even if it’s expensive because it reduces the risk of hacking by storing your private keys offline. Never purchase a used hardware wallet or acquire one from a third-party vendor as it could be compromised and you risk sending funds to an account charlatans control. Due to the fragile nature of the material they’re printed on, paper wallets aren’t suitable. 

Use A VPN To Avoid Dreadful Scenarios 

Use a VPN when buying or selling cryptocurrency to have an extra layer of security, privacy, and anonymity. If anyone gets access to sensitive information, they can steal all your money, and when cryptocurrency is lost, it becomes irretrievable and permanently unspeakable. A VPN conceals your IP address and encrypts your Internet connection, so you don’t have to worry about prying eyes. You can transact securely from any location and even use public WiFi networks. Cryptocurrency stays safe by relying on hashing and blockchain encryption, but there are vulnerabilities within the system.  

If You Become A Victim, Report It To The National Police 

If you fall victim of a crypto scam, it’s vital to act swiftly and report the incident to the competent authorities to minimize potential damage. Your state’s consumer protection office is the best place to go, as they can help you file a civil complaint or investigate the fraud to reduce future financial losses. It’s important to keep evidence of what happened in a safe location in case you’re required to provide proof for prosecutive purposes, so save correspondence or webpage archives. Equally, you must record specific crypto transaction details, like where you sent the funds from and where you believe you were sending your funds. 

Maybe someone has stolen your identity. If that’s the case, they may attempt to file a tax return in your name to collect a refund, so set up an account with the revenue service before they do or file your taxes early. Being fooled is much worse than losing cryptocurrency, meaning it can be a deeply violating and shameful experience. Stop beating yourself up for past mistakes and look toward the future. Now you know what not to do.