In the modern world, in pursuit of additional earnings, users often forget about their own safety. By resorting to innovative technologies, one of which is cryptocurrencies, one can easily become a victim of fraud.
To avoid losing your own savings, we recommend familiarizing yourself with the most common ways how cryptocurrency fraud occurs.
Fraud Schemes on Telegram
This type of scam is quite popular and is gaining momentum every day. Here, several types of scams can be distinguished, namely:
- forging Telegram channels of well-known exchanges;
- channels with fake signals;
- sending personal messages with «lucrative offers».
Thus, users may receive enticing offers in Telegram, which may seem quite profitable. However, as soon as a client becomes a participant in such a project and subscribes, or deposits funds in any other way, the scammers immediately disappear.
To avoid becoming a participant in cryptocurrency theft, it is necessary to follow basic trading rules:
- carefully study the company's history;
- do not fall for suspicious offers;
- conduct transactions on well-known exchanges.
It is also recommended to block messages from unknown users.
Pseudo-brokers
When aiming to build a successful career in trading and cryptocurrencies, one should not forget that a large number of illegitimate brokerage organizations are operating now.
Before investing money in such projects, you should first study the company's history and review the existing certificate of incorporation. If such a certificate is missing, cooperation should be terminated immediately. Another key factor of an honest firm is the presence of licenses from financial regulators. These documents from supervisory authorities indicate that the company operates within the legal framework. Even if a brokerage service at first glance seems reliable and provides all the necessary data, attention should be paid to reviews about it.
Account Hacking and Data Loss
Fraudsters hunt daily for naive users hoping to obtain their personal data, and then all funds. Different methods can be used, for example:
- Cryptowallet hacking – users often neglect security and follow unknown links, which may lead to the loss of all savings.
- Phishing – scammers create fake sites hoping to steal data.
- Exchange account hacking – due to creating unreliable passwords, clients can often lose their own accounts along with profits.
Cryptofraud is a very unpleasant process, so you should thoroughly protect your account by creating a strong password. Also, do not follow suspicious links.
Cryptocurrency Pyramids
To join a brokerage project, during registration, companies often request an invitation code, that is, a referral. This is the most prominent sign of a financial pyramid. In this situation, supposedly all participants should profit, but in reality, this is not the case. In specific schemes, new investors are paid profits at the expense of funds contributed by earlier users.
As a result of such a bitcoin scam, all its participants end up with nothing as soon as the opportunity to attract new clients disappears.
Cloud Mining
When unwilling to invest a large amount of money in equipment for mining cryptocurrencies, users often turn to using cloud mining. Clients pay for rent, as well as a part of their profit, thereby saving on the purchase of expensive equipment.
However, such organizations are most often cryptocurrency fraudsters, who do not provide equipment of proper quality. Clients may either not earn at all or receive a smaller amount of profit.
To have protection from cryptocurrency scams, potential investors should carefully study information about companies before starting cooperation. Such factors should be avoided as:
- aggressive marketing;
- promises of easy money;
- anonymity of management;
- lack of licenses;
- lack of legal documentation.
It should also be remembered that fraudsters aim to steal personal data, and most importantly, finances, so you should not follow suspicious links or subscribe to various newsletters. To ensure security, you should thoroughly protect your cryptocurrency wallet and not trust everything written in advertisements. Vigilance and taking preventive actions will help avoid falling into the hands of cryptocurrency fraudsters.