Scammers are always actively developing new and improved ways to cheat people and rob them of their hard-earned money. The cryptocurrency industry is not an exception. ICOs and cryptocurrency exchange trading are the newest ways to scam people in the industry. For initial coin offering scams, the scammer sells tokens for either cryptocurrency or fiat money and promises to hand out incentives later.
Cryptocurrency Scams You Should Look Out For
1. The Popular ICO Scam
This is when a new cryptocurrency is launched by investors and criminals, create fake initial coin offerings to get money from individuals. It can also happen when hackers impersonate the real ICO and deceive investors into paying. The scammers use phishing emails to promote a fake pre-sale to unsuspecting persons. Make sure you do enough research before you buy any tokens during ICO.
2. Using Fake Digital Wallets
Every investor needs a cryptocurrency wallet to store digital assets. However, not every wallet in the market is original. Scammers create and promote fake wallets on the web. You’ll download the wallet on your device successfully, but as soon as you put your cryptocurrencies in it, you’ll lose everything. Again, do thorough research before you use any cryptocurrency wallet. Only use a wallet from a provider that has a good track record.
3. Phone-porting Scam
This is another common cryptocurrency scam. The criminal will take control of your mobile number and trick your mobile provider into giving them control over your account. They’ll reset your password and do what they like with your wallet. To avoid falling for this scam, you can use 2-factor authentication to protect your account.
4. Cryptocurrency-stealing Malware
Nearly one-third of typical home computers are infected with malware. There is a particular malware that has been linked to cryptocurrency scammers. It allows the scammers to steal your Bitcoins and other cryptocurrency assets. To protect yourself, you should make sure that there is always a good antivirus running on your computer.
These are just a few of the common cryptocurrency scams you should look out for.