June 10, 2022
Cryptocurrency scams are growing at an alarming rate. With more and more users turning to exchanges for everyday needs, hackers and scammers are ramping up efforts to steal money from new and veteran users alike. As a result, it is important to stay updated on scams and the best practices for avoiding them.
Common Scams To Watch For
There are new crypto scams emerging everyday, but a few types of scams make up a vast percentage of activity. Let’s take a look at them.
Phishing first rose to prominence during the rise of email. Put simply, scammers attempt to trick a user into forking over sensitive information by sending messages purporting to be a reputable website needing information. Once the user clicks their link and enters their information, the scammer has it. When it comes to crypto, scammers will try to obtain your private wallet keys, the method by which funds are accessed.
The best way to avoid this scam is to avoid clicking any link and entering your wallet or trading account information, even if the message looks legitimate. If you are unsure, leave the message and go to the website directly. Clicking links is an incredibly easy and vicious way to become susceptible to scammers.
The App Store and Google Play Store both receive hundreds of millions of visits per day. With such a large marketplace, it is reasonable to expect a few bad-faith app creators to fall through the cracks and gain a bit of unjust popularity. These scammers will design apps made to look legitimate, but that’s in appearance only. Once a user opens the app and enters their sensitive information as requested, the scammer has succeeded.
The best way to avoid this scam is to keep a watchful eye when downloading any new apps that claim to offer crypto help, lessons, or free funds. Make sure what’s downloaded comes from an official content creator, with a realistic amount of downloads and reviews.
Unfortunately, blackmail is a common crypto scam. Scammers will send a message claiming any number of things, from having a user’s private photos to supposedly knowing a secret about the user. Whatever it is, they will claim it is devastating and could, if revealed, ruin the users’ life. The scammer will demand you send cryptocurrency in return for their silence.
The best way to avoid this scam is to simply ignore it. They don’t have what they claim to have, and are only preying on emotion.
Scam Red Flags To Look For
Scammers often behave in similar ways. There are a few telltale signs to watch out for that can help confirm if the person on the other end of the screen is a scammer, from odd texts to worrying demands.
Unnecessary Sense of Urgency
If the person you are communicating with seems to be overly-aggressive about getting what they want, it may be a scam. Scammers often use strong-arm or rude sales tactics to push the user into something they are not sure of. If it sounds off, it probably is. Trust your better judgment and leave the scammer behind.
Promises of Exorbitant or Immediate Returns
If someone claims to have a way to increase funds easily or in incredible numbers, it is most likely a scam – anyone lucky enough to have done so would not be sharing their secret with strangers in private messages. The reason this works is because people are hopeful or greedy. They want to believe they’ve gotten lucky, or that the person they are communicating with has altruistic intentions. Unfortunately, that’s not the case.
The best way to avoid any harm is to never accept private messages from people claiming to offer free or cheap crypto help, and report them if possible. If it is too good to be true, it most likely is.
Poor Grammar and Communication Skills
Legitimate businesses put effort into having proper grammar and syntax. If someone sounds stilted or uses language that does not sound natural over text, they may be a scammer. Often, they are in contact with several potential victims at once and either don’t care about sounding professional, or don’t know how to. Either way, it is an immediate red flag.
Steps To Take Before A Scam Can Occur
It’s just as important to be on the offensive as it is the defensive when it comes to protecting yourself from scams. Below are a few ways users can stay secure as they trade, before disaster strikes.
Keep Passwords and Wallet Data Secure
Scammers often prey on information that is easily accessible. As such, they look for data accidently posted online, saved in insecure online spaces, or found on dark web databases. It is more common than one might think.
To protect against this, consider using a password manager, and don’t share sensitive info over text or on social media no matter the circumstance.
Consistent checking of trading history is an easy way to make sure you haven’t been scammed. The more time that elapses between theft beginning and the user realizing the issue, the more potential there is for financial damage.
Keep notifications on and try to check your crypto wallet often – that way, if a scammer does come upon your information, they won’t have much time before you can begin damage control. They are hoping the user they are targeting is trusting their security mechanisms a bit too much.
Be Well Researched
The more a user knows about a topic, the less likely they are to trust dubious information or communicators. When it comes to crypto, it is important to make sure you both understand the basics and stay appraised of recent developments. That way, users can more easily see someone trying to take advantage. Knowledge truly is power.
Trade Crypto Securely
With scams on the rise, it’s important to choose an exchange that puts user safety and security first. Rubix is a robust and user-friendly way to buy, sell and trade crypto at lightning-fast speeds. Plus, enjoy an infrastructure designed to fight against scams and theft. Sign-up for the waitlist today and start your new journey towards ultimate crypto freedom.