As the popularity of cryptocurrency grows, so does the number of bad activities in the industry. This is why it is necessary to be wary of such scams in order to avoid being a victim of criminal activities. Here, we'll look at several warning signs that you shouldn't ignore if you notice them in a crypto project or a currency, and how you can avoid future regrets. The truth is that you should pay close attention to any red flags you detect since they could be the warning signs that saves your life. We'll look at the signs that indicate to a possibly illegal crypto project here, and we futher look at how to avoid them.
The Signs Of Cryptocurrency Scam
Like I previously stated, there are some red flags or signs that you shouldn't ignore when dealing with cryptocurrency, this signs includes;
Offers That Are Too Good To Be True
This is one of the warning signs of a shady cryptocurrency project. When they present you with offers or returns that are absurdly high, it should serve as a red flag. Imagine someone promising you that if you invest in a specific cryptocurrency project, you will double your money in a couple of days. How is that even possible? This is simply a technique for them to take advantage of people's greed and steal their hard-earned money. I recall a friend of mine bringing a similar alleged investment opportunity that promised a big return some time ago.
I didn't invest because it had all the characteristics of a ponzi scheme but was disguised as a cryptocurrency. The site crashed not long after that, and people's money vanished into thin air.
Some of these bad scammers have invented a new method of deception. They may just chat you up or message you that you have been chosen for a prize or that you have won something for which you never applied or were even aware. As a result, you should be cautious when opening such message. I received a similar message in my WhatsApp a few weeks ago from someone I don't know. The screenshot is shown below.
I honestly believe, if it weren't for greed, no one would believe such nonsense. He didn't even get my name right, and the amount is too good to be true, so it's obvious it's a scam.
Some of these cryptocurrency scammers have a clever method of copying an original project or coin. They may even claim to be someone they are not. I recall a friend of mine telling me about how a supposed admin of a crypto telegram group to which he belongs sent him a private message regarding a particular offer. But, upon closer inspection, it was not the group admin, but someone attempting to imitate him in order to defraud the unwary victims. Looking at it from a broader perspective, which admin or moderator will approach you first and offer you shady deals?
They also utilize impersonation to mislead their victims by creating fake identical websites. Consider the following scenario: The lowercase of the letter "l" resembles the capital of the letter "I" if you don't look attentively. Consider the following: (I & l), where the first letter in the bracket is a capital I and the second letter is a small "l." This are some minor things individuals may overlook, scammers can use them to impersonate other legitimate sites and projects. Before you click on any url, you should carefully inspect it. If at all feasible, make a bookmark of the ones you go to on a frequent basis.
Phishing Links & Email Faking
Simply said, e-mail faking is the act of sending an electronic message under the guise of a legitimate source, such as a crypto exchange or wallet provider. With this falsified website, the recipient of such an email may be led to feel that the email is legitimate, allowing the evil scammer to carry out their criminal activities. Sending phishing links to people is one of the things they may do with such mails. A phishing link is one that is designed to trick people into believing a malicious or deceptive message in order to defraud them. To detect phishing, you must pay close attention to the smallest aspects. Even a minor, seemingly insignificant inaccuracy should not be overlooked.
These faking emails may contain malicious or virus files that, once opened, can extract important information such as passwords and private keys or login details that are saved on the device. This is one of the reasons why you should double-check that any link sent to your email is from a trusted source before clicking on it.
How To Avoid Cryptocurrency Scam
Undoubtedly, understanding a problem will lead one in the right route to addressing it. We've discussed the signs of crypto scams how their scams, so now we'll look at how to avoid them. Always keep in mind that it is only our responsibility to keep our crypto assets safe from unauthorized access. So, let's discuss about how to avoid cryptocurrency scam.
Pay Attention To The Slightest Things.
This has aided many people in avoiding scams. When reviewing a crypto project to invest in, there are a few details to keep in mind. Multiple grammatical errors on the project white paper or road map, for example, should serve as a red flag. Obviously, a decent project should be able to spell-check their articles before publication. Errors in the URL should also be considered a red flag. This is because it's possible that things are done on purpose to make it look like the real site's url. As a result, you must pay close attention to all of these aspects.
Also, before downloading a crypto app from either the Playstore or the App Store, make sure to read the app's reviews. Avoid apps with a low star rating or a high number of negative reviews. Always remember that it is better to be safe than sorry when it comes to security.
Install Antivirus On Your Mobile Phone or System
Some scams work by infecting a system with virus that can read personal information or perform other unwanted tasks. As a result, it is highly suggested that you install antivirus software and update it on a regular basis to protect yourself from such assaults. The truth is that without an antivirus, no matter how safe you think you are, you are already putting yourself at risk. This is because the technology used by some of these con scammers has grown to the point where you'll need something more advanced to wade through it.
Keep Your Keys & Your Login Details Safe
Your wallet private keys, passcode, phrase words, authentication codes and other personal information are fully your responsibility, and you should treat them with extreme caution. You should never divulge these details to a third-party unless you are willing to give them access to your assets. You should be aware that no wallet provider or agent of any crypto exchange will ever ask you for your login information or private keys or 2FA. If someone asks you this, it should immediately raise a red flag in your mind, alerting you to the fact that the person's intentions are not pure.
Your private keys should be keep in a well secured place, a hardware wallet is still the best means of storing or keeping your keys, this is because they are offline. If you're to keep your password or keys in your email, it's strongly important you protect the email with 2FA, make sure you don't click any links and if you must, you need to verify that the mail or link is from a trusted source.
Since the crypto ecosystem is still in its early stages, many scammers are seeking for ways to steal people's hard-earned money. You should exercise extreme caution and avoid participating in any crypto project if you feel something is incorrect (which could be due to uncertainty, flaws, or other factors).
Thank you for reading.
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