Photo by Pierre Borthiry – Peiobty on Unsplash
In light of recent bank failures, many are turning to cryptocurrency, optimistic about the potential for greater financial security. However, there are many types of scams in the crypto world that users are concerned about, with searches for “crypto scams” increasing 35 percent in the past week.
Granit Mustafa, founder of Walletor tells Digital Journal about some tips to prevent crypto users from falling victim to these common scams.
Investment opportunity scams
For crypto enthusiasts wanting to explore investing, it is crucial to gain awareness and remain cautious, as investment scams can take many forms. Numerous scammers will reach out and offer investment opportunities that offer significant returns.
“When looking into investment opportunities, be aware of sites that offer zero risks, large profits, and misspelled words or links. If wanting to try investment opportunities, remember to invest only what you can afford to lose,” says Granit.
Social media scams
Crypto users have social media accounts that scammers can take advantage of. Crypto scammers can reach out to social media users via messages and offer investment opportunities, romance, or giveaways. A number of these crypto scammers will impersonate large crypto companies, cryptocurrency influencers, or even celebrities.
“If you receive a message on social media from someone that you suspect may be a crypto scammer, the best thing to do is ignore it. Check the profile to see if it is fake by the low follower count or unverified account and report it,” recommends Granit.
Additionally, be aware that some crypto influencers can be dangerous as they can promote various forms of crypto and tokens that are not regulated and cause users to lose money.
Rug pulls
Rug pulls are another dangerous form of crypto scams. During a rug pull, developers push their new crypto tokens and increase the price for investors. As soon as the price drops to zero, the developers abandon the tokens with the investors’ money, leaving them with nothing.
“The best way to avoid a rug pull is to avoid investing in unknown or anonymous developers. Be aware of tokens that do not offer locked liquidity, are not audited externally, and offer investors high yields,” indicates Granit.
Phishing scams
Phishing scams are the most common types of scams and are hazardous in the cryptocurrency world. Phishing scams can draw users into clicking on a link to a fake website and entering passwords. Once scammers have a user’s password, they can access personal information, including crypto keys, account details, and assets.
“The best way to ensure that users do not fall victim to a phishing scam is to use the direct website when checking information. Do not click on any unknown links in texts or emails and only enter passwords on reliable sites,” Granit suggests.
Cryptojacking
Cryptojacking is when miners use another person’s laptop, phone, tablet, or servers to mine cryptocurrency without the victim knowing. Cryptojacking can happen by clicking on malicious links in emails or texts. The device is then infected, and cryptojackers use the victim’s device to mine cryptocurrency. While most cryptojacking may go unnoticed, victims may notice that their devices are running slower, using the cooling fan more, or having higher electricity bills.
“Prevent cryptojacking on devices by installing a cybersecurity program or using programs on Firefox, Chrome, or Opera that block mining activities,” recommends Granit.
Final thoughts
Cryptocurrency can be enticing and beneficial as it provides investors with the potential for a significant return on their investment. However, Granit advises that users should know the associated risks that come with this type of investing.
He concludes: “Staying vigilant and up to date on recent crypto scams can serve as a protective barrier against potential loss, so educate yourself before you dive into the world of cryptocurrencies.”
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