How to Detect Cryptocurrency Scams: Don’t be a Victim

How to Detect Cryptocurrency Scams: Don’t be a Victim

Cryptocurrency News
July 9, 2018 by Sandra Onyeiwu
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The cryptocurrency market can be a good way to earn money, it is also a prime target market for scammers. News about phishing emails and Ponzi schemes in the cryptocurrency space have been on the rise daily. Ponzi schemes, fake social media accounts, and phishing are the most widespread traps among hundreds of others. Despite countless examples of
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The cryptocurrency market can be a good way to earn money, it is also a prime target market for scammers. News about phishing emails and Ponzi schemes in the cryptocurrency space have been on the rise daily.

Ponzi schemes, fake social media accounts, and phishing are the most widespread traps among hundreds of others.
Despite countless examples of how to avoid these scams many people still fall for it. But is this born out of ignorance or fact?

Cryptocurrency Giveaways

One common way to earn quick and easy money is to pose as a famous person. Scammers use the real person’s profile picture and leave a comment on their original tweet, announcing a giveaway. These scams often take place on popular social media platforms, especially Twitter.

Big names like Vitalik Buterin even list “Not giving away ETH” in their profiles to make the cryptocurrency community aware of this problem.


Recently, William Shatner was impersonated by scammers. William Shatner’s impersonator has been outed by the real Shatner, for pushing a crypto Ponzi scheme.

The scammer’s tweets started on June 20th, unveiling a website that purported to give away 10,000 ETH. All you had to do to claim your ETH was to send somewhere in between 0.5 and 20 ETH to verify your address. Then supposedly the website promised to send you back your original ETH, and then 10 times your original amount would be sent back to you.

Shatner, being a celebrity already involved in the crypto community for his role as a spokesperson for the Solar Alliance Energy, an outfit that is starting to develop a crypto mining facility that uses solar energy, is a perfect target for scammers.

Usually, these scams will tell people to send ETH or BTC to a given address. The scammer promises to give that person more ETH or BTC in return.
This seems like a rather obvious scam strategy, and you might think there are zero chances of you falling for this fraud. Unfortunately, people have fallen for it numerous times. If someone is promising you a tenfold reward, be realistic – it is too good to be true.

Other big names that scammers have targeted include; John McAfee, Elon Musk, Donald Trump and Sir Richard Branson. These are all targets for their involvement in the tech or crypto field, along with their massive following.

Fraudulent websites

Another is to watch out for fake websites. Phishing attacks are quite common among cryptocurrency scams. Always be careful of the outbound links and try to verify that you are going to a legitimate website.

You can identify a fake webpage by the appearance of tiny dots beneath the URL characters. Also, the absence of “Secure” and “https” markers before a website’s URL could be a warning sign of a fake site.

Scam ICOs and Emails

ICO scams continue to be a problem for the cryptocurrency market. Any cryptocurrency ICO that guarantees that the price of its token will rise to a certain percentage is likely to be a scam.

Some scammers prefer to send emails announcing fake ICOs, helping them to steal a significant amount of money. It is not very difficult to impersonate a real cryptocurrency issuer, so bear this in mind and remain skeptical of any emails that mention an ICO.

ICO scams are such a big problem that the SEC issued one to demonstrate how easy these scams are to fall for and to educate investors. With regulators starting to pay more attention and getting stricter on ICOs, the number of scams should start to diminish.

Cloud Mining Scams

Cloud mining scams often seemingly appear more legitimate In some cases, cloud mining companies guarantee returns. Again, this is an obvious scam, especially since it’s very difficult to predict cryptocurrency price fluctuation.

Sometimes, fake cloud mining companies are disguised much better and don’t include guarantees on returns. They merely charge users a subscription fee upfront without any real chance of profitability.

Don’t be a Victim

In the US, the SEC is calling on all exchanges to register as securities exchanges. Around the world, other countries are drawing up legal frameworks to protect investors without restricting innovation.

As long as you keep security measures in mind, implementing cryptocurrency can benefit your business. Trust only reliable and acknowledged websites and cryptocurrency exchanges.
By using these strategies to detect various scams, it will be simpler to mitigate potential risks and sort out the real opportunities from the fake. Stay safe don’t be a victim to scams.

 

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