Cryptocurrency-related scams happen all the time, and it’s important that you recognize what they are, how they work, and why so many fall victim to them.
So how does someone navigate the world of cryptocurrency trading while avoiding the potential threats that lurk online? Here are some tips to help you avoid cryptocurrency scams, and actions you can take to report suspicious activity.
How Do Cryptocurrency Scams Work?
While cryptocurrency isn’t as widely circulated like mainstream currencies, it is still susceptible to cybercrime tactics both old and new. In 2018 alone, crypto thefts totaled $1.7 billion worldwide, resulting from Ponzi schemes, fraudulent initial coin offerings (ICOs), pseudo exchange hacks, and other deceptive ploys.
One of the most common ways fraudsters scam victims is by targeting them on channels frequented by crypto enthusiasts. Social media sites, namely Twitter, are breeding grounds for “giveaway scams” that link to fraudulent/phishing websites promising offers that are “too good to be true.” Telegram, a messaging service popular in the crypto community, has also become an avenue for hackers to impersonate individuals and companies when luring victims.
Whether a giveaway scam or an investment scam, crypto criminals will typically try to get their victim to transfer over cryptocurrency by promising a high yield on their investment, or by simply masking the request as an identity authentication method.
It is also very common for fraudsters to impersonate customer service or tech support reps (from popular platforms, like eToro) and set up a phone number, email, or website to spam victims. Hackers are skilled in deceptive tactics like this, in order to extract personal information or crypto exchanges for fraudulent purposes.
What Can I Do to Avoid Crypto Scams?
The most important thing to do is remain vigilant about every crypto offer or communication you come across online. A reputable exchange (or any private/public organization for that matter) will never solicit you to send cryptocurrency through an email, phone call, web advertisement or otherwise.
In most instances, it is easy to determine if a website, email, or social media post is fraudulent on face value. Most hackers will feature:
- Bad tech and design
- Misspellings
- Web addresses and sites without SSL certificates
In addition to googling a suspicious company name to check for media coverage and reviews, make sure that you see a lock and/or Https before the URL.
On top of that, ignore offers that appear “too good to be true” or use tactics like asking for personal information, login credentials, or remote access. As a general rule with all cyber attacks, avoid clicking or opening any suspicious links or emails, as it could lead to malware software infecting your computer.
On top of being vigilant, it’s important to report suspicious activity, which includes fraudsters impersonating eToro employees. You can visit the eToro customer service page, and report potential scams to the FBI and FTC.
Stay safe out there!