COMMON SCAMS TO WATCH OUT FOR IN 2023 AND HOW TO AVOID THEM.
If you have the stamina for it, investing in Bitcoin and other coins can be a wild journey. Retail buyers and speculators are swarming to the bandwagon in an effort to get a chance at the moon. However, as the use of digital money grows, so do online fraud schemes and hacks involving Bitcoin and other cryptocurrencies. Phishing, corporate parodies, and other Bitcoin-related hacks and schemes increased by nearly 200% between October 2020 and May 2021, around the time of Bitcoin’s out-of-the-park bull run. During that period, the price of bitcoin soared by almost 400%, reaching almost $65,000. You had best believe that if Bitcoin experiences a whole other rooster run, cybercriminals will also be joining the party. Seeking to become knowledgeable about Bitcoin scams? Do you want to know how to protect your assets the right way? Find out by reading on.
EIGHT OF THE MOST PREVALENT BITCOIN SCAMS AND CYBERATTACKS.
You might be acquainted with some of these frauds and cyberattacks if you’ve been HODLING (a word for long-term cryptocurrency investors who haven’t panicked sold through the ups and downs). However, if you’re new to the world of cryptocurrencies, you should be mindful of the dangers. Cybercriminals and hackers are always coming up with new, creative methods to take Bitcoin and other cryptocurrencies. The last thing you want to do is give your cryptocurrency to an internet scammer if you’ve been making wise decisions and profits with it. Here are some of the most recent hacks and frauds involving cryptocurrency.
1. Email impersonation: Spoofed websites and phishing attempts
The most typical coin fraud is this one. Scammers may pose as employees of well-known cryptocurrency platforms like Binance, Huobi Global, or Coinbase in fake emails. Additionally, they might pretend to be Bitcoin wallets or different altcoin applications. They frequently send out “security alerts” in an effort to frighten you and persuade you to input your security and account information on a fake website. By doing this, they can access your money or Bitcoin account. Fraudsters have gotten quite good at creating websites that appear exactly like the genuine thing. To persuade individuals to provide their confidential information as well, they employ social engineering.
HOW TO PROTECT YOURSELF AGAINST PHISHING ATTEMPTS
- Prevent shady websites: Be cautious when clicking on links. You might be rerouted to a spoofed site if a hacker copied a website and made a small change to the Address, like replacing the character “O” with a zero. Additionally, scan emails for spelling mistakes, odd phrasing, and grammar mistakes.
- Write it out by hand: It’s a good idea to physically enter the website’s name into your browser to make sure you land on the correct one as a precaution. It’s worth taking a little more effort to make sure you’re protected.
- Use the software hints: Never input sensitive information like passwords without first checking the browser. Is the Address preceded by a closed padlock icon? Does the site URL begin with a https:// when you look at the complete domain name? Is the website’s name listed in the Address, correct? In the absence of this, you might be on a malevolent website.
2. Phone Impersonation: Security and Tech Support Scams
Hackers sporadically construct fake customer support phone numbers for bitcoin exchanges, wallets, and apps. Through scam emails and phishing assaults, they will try to convince Bitcoin users to get in touch with them with fake security alerts or customer service requests. But be wary — you might also receive communication from fraudsters. Outbound conversations can be particularly dangerous because fraudsters can pretend to be genuine help lines. Never divulge any confidential information to an employee when they contact you.
Keep in mind that any company could be the origin of this fraud or the fraud that came before it. Scammers may send you phoney emails or make unwanted phone calls asking for your password information, credit card information, or other private account information while posing as reps of Amazon, Google, Netflix, or your bank.
WHAT INFORMATION ARE PHONE IMPERSONATORS AFTER?
- Bitcoin transfers: A dishonest customer service representative might request that you transfer money to a different blockchain address to “check” your address. Never conduct any business unless you are certain of the purpose.
- Passwords and login information: Never provide a password or login information for an account over the phone or in an email for “verification.” Only input it into private areas of reliable websites.
- Confidential keys: You are the only person with access to your Bitcoin or crypto private key. Give it to no one ever.
- Direct access: Connectivity to your gadget may be requested by thieves in order to “fix a problem” you may be having. Never give a cryptocurrency customer assistance representative direct access to your computer (or anyone else). Information on two-factor/multi-factor security It’s possible that scammers are looking for 2FA passwords or tokens to enter your account. Never stop using these. They serve as an additional layer of defense in the event that your credentials are stolen.
3. The Man in the Middle Bitcoin Attack
Man-in-the-middle attacks, which can occur when using public Wi-Fi, are not at all scams but rather cyberattacks. This might occur at an airport, railway stop, dining establishment, or coffee store. Data between your device and the internet connection is intercepted by an intruder. This makes it possible for hackers to access any data you transmit, including private keys, login credentials, and passwords.
The thieves can access your Bitcoin or other cryptocurrencies if you’ve signed into a Bitcoin programme, wallet, or account. If a hacker is near enough to capture the Wi-Fi signal, this could even occur at home or on a secure network.
Blocking the middle guy is the most effective method to thwart an MITM assault. With a solid, trustworthy VPN, this is simple. All data travelling to and from your computer is encrypted by a VPN. Because of that protection, even if a hacker steals your data at the airport, they won’t be able to access it.
Additionally, a VPN shields you from internet service provider surveillance (ISP). They also won’t be able to decode your information due to the VPN if an employee is misusing access or if someone hacks the ISP. NordVPN comes highly recommended when it comes to security. When it comes to security and safety, they come out on top in our evaluation list. They are also our top no-logs supplier for customers who value their private.
4. Social Media Cryptocurrency Giveaway Scams
On Facebook, Instagram, and other social media platforms, there are countless scammers running phoney Bitcoin giveaways. They display phoney screenshots with messages purporting to be from organisations or famous people like Elon Musk announcing the giveaway. The fraudulent messages are swarmed by bot accounts, which appears to corroborate their authenticity. However, they will require your “address verification” once you have accessed the fraudulent website. By transferring bitcoin to the blockchain address of the phoney gift, you can confirm your identity.
You won’t make it to the point where they say they’ll email you the giveaway after they’ve gotten the money for the verification. The ideal situation would be for you to give them Bitcoin and receive nothing in exchange. The worst thing that can happen is you wind up clicking a malicious link, scanning a fraudulent QR code, or entering your account information on the fraudulent site, which can result in a great loss of money.
WHAT TO DO WHEN YOU SEE A BITCOIN GIVEAWAY
• Avoid using blockchain address verification: Never use bitcoin to “check” your blockchain address.
• Use social media with caution: Forged communications and altered images are fairly typical. Ensure the social media page you’re viewing is legitimate and not a fake one.
• Do your research: There are legitimate ways to make money with cryptocurrencies, such as referral programmes for companies in the space. Google can be used to research the organization or person running the giveaway. It’s legal, right?
. Verify domains and websites: Verify that the giveaway URL is authentic and not a phishing or spoof site.
- Report: As soon as you become aware of a scam or deception, notify it.
5. Bitcoin Extortion and Sextortion Scams
Sadly, blackmail schemes like “I know your passcode” are reappearing. Coercion emails that were once basic, low-tech messages have advanced in sophistication.
On the black web, thieves and hackers can buy emails and credentials associated with previous data breaches. Therefore, it’s possible that you’ll see one of your old passwords in an email subject. These con games may make your pulse race, but they are almost always false.
They may also assert that they gained access to your computer and its camera and took pictures or videos of you that are sexually graphic. It’s referred to as a sextortion fraud. These scam emails only aim to frighten their recipients. The perpetrator’s goal is to persuade you to transfer bitcoin to their blockchain address.
WHAT TO DO WHEN YOU RECEIVE AN EXTORTION OR SEXTORTION EMAIL
- Don’t respond: Don’t give any information and don’t transfer any money. If you live in the US, you can submit the email to the FBI’s Internet Criminal Complaint Center (IC3). International frauds can be reported at eConsumer. Inform your company’s IT staff if you receive the communication via your work email.
- Update your credentials: If you haven’t updated your passwords recently, you should do so right away. Ensure that they are unique for every account and are composed of a mix of uppercase and lowercase characters, symbols, and digits.
- Mark as spam: Once the email has been reported, designate it as junk and remove it. In this manner, the sender’s subsequent communications won’t wind up in your primary inbox.
- Perform a malware scan: Perform a scan to look for any malware on your computer or other device, just to be safe. For more details and advice, read our complete article on antivirus software and take a look at our top five recommendations.
6. Bitcoin Investment and Business Opportunity Scams
According to a Federal Trade Commission survey, American customers reported losing more than $80 million to cryptocurrency investment frauds during Bitcoin’s most recent bull run (FTC). That’s ten times more than the previous year. According to the FTC, nearly half of those victims were between the ages of 20 and 39. These con artists will approach you and promise you exorbitant investment yields and “financial independence.” The purchase is typically a Bitcoin or other cryptocurrency-related scam. Investment frauds come in a variety of forms, such as.
· Pyramid Schemes: These are methods of hiring. The concept is to purchase the right to hire with an advance Bitcoin or cryptocurrency payment. You are guaranteed coin rewards for each new participant you bring on board the programme, which may grant access to cryptocurrency trading guidance, first access to brand-new ICOs (Initial Coin Offerings), or other benefits. Say you enter the programme for $500 in Bitcoin. You might receive $100 in Bitcoin back for each individual you bring on board. You provide a comparable service to those you hire. You earn more money the more employees you hire. Yes, you could profit if you discover a plan in its infancy that really pays off. However, pyramid schemes are prohibited for a reason: eventually, there are more promoters than there are prospective candidates. This pay-to-play system is frequently abused by scammers who never actually pay anything.
· Phony Investment Managers: You will be approached by “investment advisers” in this scam. They have reportedly earned millions and are knowledgeable about dealing cryptocurrencies. If you allow them to handle your cryptocurrency, they can also earn you millions. They may demand advance payments if they’re after low ratings. They might attempt to scam large amounts of money for “investments” if they are bold. Of course, there is very little chance that you will actually win anything with them. By funding them and allowing them access to your finances, you will actually end up losing money. Any “experts” handling your bitcoin assets on social media should be avoided.
7. JOB OFFERS AND EMPLOYMENT SCAMS:
Thieves may also pose as recruiters and human resources representatives to prey on employment seekers. You might get an interesting “job offer” letter if your resume or CV is online somewhere. Most frequently, con artists demand money in cryptocurrency to begin work training. Or perhaps they’re searching for money administrators or cryptocurrency investors. In either case, nothing will be given to you in exchange for the Bitcoin you spend.
8. CELEBRITIES ENDORSEMENT INVESTMENT SCAMS
This year, the UK removed close to 300,000 connections to phoney star support schemes. In that they use personalities to entice prey, these are comparable to giveaway schemes. On social media, false news is spread from outlets that seem genuine, like ABC or the BBC.
Scammers use actual pictures and make up celebrity endorsements about massive returns on cryptocurrency investments. In the UK, con artists used Ed Sheeran and Richard Branson to promote fake investment opportunities, while in Australia, fake Chris Hemsworth and Mel Gibson provided endorsements. It’s one of the strategies used most frequently when starting bitcoin pump and dump scams. For a detailed summary of NFT scams and information on how to safeguard your digital assets, read this piece.
HOW TO PROTECT YOUR BITCOIN AND CRYPTO-ASSETS
It’s time to safeguard your investment now that you are aware of scams and cyberattacks, thanks to the Cryptocurrency Forensics Experts at POLYGON DECIPHER. You should never store a chunk of your cryptocurrency on an exchange like Coinbase, Binance, or Gemini, to start with. Exchanges should only be used for trading. Although these trading sites have advanced security measures, hackers frequently attack them. A breach on Binance in 2019 resulted in the theft of $40 million in Bitcoin. According to Fortune, over the past ten years, hackers have attempted to take nearly $2 billion in Bitcoin and have largely been successful by attacking exchanges. What’s the best method to store your money, then, including Bitcoin? What other safeguards are there for your money? You’ll need a reliable digital wallet if you plan to retain your cryptocurrency for a long time or simply want to store it securely until you’re ready to trade.
PROTECT YOUR CRYPTO WITH A COLD WALLET STORAGE
The cold wallets communicate with the cryptocurrency’s underlying blockchain network. Everybody has a public address and a secret passcode. You can send cryptocurrency to other people or move it to exchanges by using the private key to gain access to the wallet and make purchases. The public blockchain address enables you to accept transactions. Wallets come in a variety of styles to suit the requirements of various customers. Cold wallets are inactive storage devices that are not online. These wallets are regarded as the safest and least dangerous because they are real hardware (although they resemble USBs). For long-term buyers who want to keep, they work best. To best describe them, think of safes, bunkers, or safety deposit boxes. They are very secure and can hold a lot of money or valuables, but getting them out takes longer. To get a notion of a cold wallet, take a peek at the Ledger Nano S Plus.
Sidenote: In the early days of Bitcoin, paper wallets — physically written on paper with passwords and QR codes — were common. However, they have lost popularity since the introduction of electronic wallets. You are simply printing out a digital wallet’s Bitcoin details, not printing out and saving Bitcoin itself. Paper wallets are usually not advised because they are simple to misplace, misread, or harm. Using a cold wallet is a smart move if you are generating Ethereum or Bitcoin.
SECURITY STARTS WITH A STRONG PASSWORD
Strong passwords are advised by experts at POLYGON DECIPHER for a reason. This particularly applies to your money and Bitcoin accounts. It can be difficult to recall passwords for the 25 accounts the typical person has to manage. We’ve all developed the poor practise of using the same password across numerous websites. Additionally, we frequently create flimsy passwords and keep them for a long time.
Make sure your passwords for websites involving Bitcoin and other cryptocurrencies are unique, secure, and frequently updated. Avoid using anything that could be readily connected to you, such as names of your children or pets, places you’ve worked or attended, or institutions you’ve attended. Instead, use a mix of capital and lowercase characters, symbols, and numbers.
How are you going to remember all those strong passwords, then? Password organizers can help with this. They assist you in coming up with, storing, and maintaining secure passwords. If you’re trying to find the top password manager: In our evaluations of password managers, 1Password came out on top. Despite the fact that the professionals at POLYGON DECIPHER have developed quantum computing mechanism to crack password in seconds, it is in your best interest to prevent the harm even before it occurs.
KEEP YOUR CRYPTO SOFTWARE UP TO DATE
Strong online security is similar to a new vehicle in that it requires regular upkeep to keep everything in working order. Hackers never stop trying to circumvent progra89mme protection. Software developers upgrade the security to seal the breach when vulnerable code is found. Unless you download the upgrade, no matter how well they are able to close the flaw, it will do you no good. Updating software regularly may seem like a tedious task, but almost all compromised software was in need of the most recent patch. To avoid losing your priceless Bitcoin, maintain your crypto-related software updated. In order to keep anonymity with cryptocurrencies, you must frequently upgrade the trading software (like the Ledger). This will help you avoid any glitches.
It’s a good idea to imagine yourself as a hacker in order to escape these typical crypto schemes (or maybe at their laptop). Cons and schemes are intended to frighten the target and divert them from the criminal’s ultimate goal. Scammers and scam artists want to frighten you into acting rapidly before you have had a chance to consider the situation. People only start to wonder how strange the scenario was in the first place after becoming a sufferer and having some downtime. You can stay one step ahead of scammers by understanding how they think. What do these con artists actually want, then?
Many of these scams have as their goal getting you to transfer Bitcoin or another altcoin to a fraudster’s blockchain address. You can halt payments and undo deals using conventional banking techniques. By speaking with your bank, you may be able to recover any money you believe to have been lost or misappropriated.
But with Bitcoin and other coins, that’s not the situation. Bitcoin is a decentralized digital money that no organization is in charge of. You must be completely certain that the person or business to which you are delivering bitcoin is a reliable one. There is no turning back once you send something to a blockchain account, and there is also no one to ask for assistance. Scammers will be happy to hear that they have won once they’ve tricked you for a brief period of time. The goal of fraudsters is to access your Bitcoin money or account. They can transfer bitcoin anywhere they want once they have access. They aim to obtain the following through the various frauds and hacks we previously discussed:
• Private keys: A private key (or keys) that should only be known by the user are found in cryptocurrency wallets. Having access to this key enables scammers to conduct deals and make purchases.
• Passwords and login information: They need access to the bitcoin accounts and applications of their victims.
• Online access: Thieves may ask for access to your device remotely in order to “solve an issue.” Scammers can access your cryptocurrency accounts, online financial accounts, and every aspect of your online existence once they have control of your computer.
• Information about two-factor or multifactor authentication: They may be looking for 2FA or MFA credentials or codes to access your Bitcoin accounts and applications.
If scammers can’t get to your Bitcoin, they’ll be more than glad to take other items to use against you. Scammers are becoming more skilled at using social engineering. They could obtain all sorts of private information about you through deceit and manipulation, including pet names, significant anniversaries, or the institutions you attended, to input into software that guesses passwords and security questions.
Entering the realm of cryptocurrencies can alter your existence, for better or worse. With the ideally timed transaction, you might make significant gains. Or you might enter a FOMO frenzy and learn a harsh lesson in waiting. You might think that your partially stored cryptocurrency will be worth millions of dollars in ten years. Whatever your motivation for entering the world of cryptocurrencies, be sure to take the required measures to reduce your risk. Even now, you can purchase Bitcoin using PayPal! You don’t want your hard-earned digital currency to end up in the hands of hackers and cybercriminals, whether it’s due to a scam or careless security measures on your part. Check out our top VPNs for crypto dealing and the most private coins available today for increased security.
