3 Ways to Protect Yourself from Cryptocurrency Scams

3 WAYS TO PROTECT YOURSELF FROM CRYPTOCURRENCY SCAMS

It doesn’t take long to realize that these transactions are risky once you get involved in the new digital monetary systems known as cryptocurrency. And we’re not talking about the market’s volatility. Scams abound on the internet, and bitcoin exchanges are no exception. So be aware of losing your bitcoin investments when you consider investing in various firms and exchange platforms.

Experts advise that while researching digital bitcoin companies and startups, make sure they’re blockchain-powered, which implies they monitor through transaction data. Next, check if they have credible business plans that address real-world issues. Then, companies should define their digital currency liquidity and initial coin offering (ICO) standards. Finally, genuine people should run the company. If the startup you’re considering lacks some of these criteria, you should reconsider your choice.

What is cryptocurrency?

Cryptocurrency, often known as crypto-currency or crypto, is any type of digital or virtual currency that uses encryption to safeguard transactions. Cryptocurrencies operate without a central issuing or regulating authority, instead of relying on a decentralized system to track transactions and create new units.

The meaning and definition of cryptocurrency

Cryptocurrency is a digital payment mechanism that does not rely on banks for transaction verification. Instead, it’s a peer-to-peer system that allows anyone to make and receive payments from anywhere. It’s anonymous. Cryptocurrency payments exist solely as digital entries to an online database identifying specific transactions rather than as actual money carried around and exchanged in the real world. The transactions made with cryptocurrency funds are recorded in a public ledger. Digital wallets are used to store cryptocurrency.

The moniker “cryptocurrency” comes from the fact that it uses encryption to verify transactions. This means that storing and sending cryptocurrency data between wallets and public ledgers requires complex coding. Encryption’s goal is to ensure security and safety.

Bitcoin, the first cryptocurrency, was created in 2009 and is still the most well-known today. Much of the fascination with cryptocurrencies stems from the desire to trade for profit, with speculators driving prices high at times.

Dive deeper into what cryptocurrency is and how it works visit – https://www.kaspersky.com/resource-center/definitions/what-is-cryptocurrency

 

Learn from our Experts!

Our President and CIO, Wes Henry, Joined Steve Hallstrom on the radio—AM 1100 The Flag WZFG to talk about CryptoCurrency. Where he answers the question is Cryptocurrency the same as Venmo or Zelle.

3 Ways to Protect Yourself from Cryptocurrency Scams

Phishing Scams

Scammers will send fake transfer receipt notifications to users to steal your credentials. Attackers who are trying this cryptophishing method are not doing anything new, but rather using a proven method of playing on your desire for something for nothing or you want to verify that an error wasn’t made – so you will click on their link.  Phishing is still a viable means of stealing cryptocurrency accounts and funds. Knowing a few easy principles, on the other hand, can assist you to avoid being attacked. So how can you combat this attack?

  • Before entering credentials, double-check the URL in the address bar.  A frequent phishing tactic is website spoofing.
  • Links in e-mails should not be trusted. Instead, save the URLs of bitcoin wallets, exchanges, and other relevant services to your bookmarks and open them from there.
  • Use a different password for each cryptocurrency service (as well as all other sites and services) to ensure that a hack or data leak on one account does not affect your other accounts.
  • Maintain vigilance. Messages regarding significant transfers, gifts, or victories that arrive unexpectedly are almost always a ruse.

 

Imposter Websites

An imposter website or scam website is any illicit internet website used to trick consumers into fraud or malicious attacks is referred to as a scam website. Scammers use the Internet’s anonymity to hide their genuine identities and objectives behind various masks. A scammer will use false security warnings, giveaways, and other deceptive formats can be used to provide the appearance of authenticity.

Although the Internet serves various purposes, not everything on the Internet is what it appears to be. Websites are set up for different malevolent objectives among the millions of legitimate websites fighting for attention. These websites are used to do everything from identity theft to credit card fraud.

Scam websites operate in various ways, from providing false material to offering large sums of money in a financial transaction. However, the eventual goal is nearly always the same: to get you to hand over your personal or financial data. This website could be a standalone site, popups, or unlawful overlays on legitimate websites through clickjacking. Regardless of how they are presented, these sites are designed to entice and mislead users.

There are various simple strategies to safeguard yourself and your family against fraudulent websites when navigating the Internet.

  • Poor Quality – Design quality is poor: It may seem self-evident, but pay attention to how a site is designed. Is it designed with the same level of skill and aesthetic quality as a legitimate website? Low-resolution graphics and unusual layouts can indicate a hoax.
  • Is that English? – Look for obvious grammar faults, such as the incorrect usage of plural and single terms, as well as spelling mistakes and broken or stilted English.
  • Urgency?? – Is the language on the page likely to arouse your emotions? If you have a strong sense of urgency, hope, or anxiety, proceed cautiously.
  • Too Good to be True? A professional business website should include introductory sections like “Contact Us” and “About Us.” If you’re unsure, give the company a call. Be wary if the number is a mobile phone or if the call goes unanswered. There’s probably a reason why a company wants to avoid verbal contact.

Fake Mobile Apps

Scammers also use bogus apps accessible for download on Google Play and the Apple App Store to deceive cryptocurrency investors. Although stakeholders can typically immediately identify and delete bogus apps, this doesn’t imply the apps aren’t having an influence on many businesses. According to Bitcoin News, tens of thousands of individuals have already downloaded fraudulent bitcoin apps.

While Android users are at a higher risk, every investor should be aware of the possibilities. Are there any glaring misspellings in the copy, including the app’s name? Is there an inauthentic look to the branding, such as odd colour or an erroneous logo? Take note of this and think twice about downloading.

Cybercriminals can target everyone who uses your apps, therefore it’s up to you to stay safe.

 

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