Cryptocurrency Scams To Be Aware Of
It is important to be aware of the risks when looking at investing in cryptocurrency. There are many scams involving crypto, and fraudsters are eager to take advantage of you to steal your money.
How To Protect Yourself From Cryptocurrency Scams
- Protect your wallet. Use a wallet with private keys. If anyone asks you to share your keys to participate in an investment opportunity, IT IS A SCAM.
- Keep an eye on your wallet app. The first time you transfer money, transfer only a small amount to confirm the legitimacy of the crypto wallet app. If you notice any suspicious behavior, uninstall the app.
- Only invest in things you understand. If it is unclear how a certain cryptocurrency works, then it is best to pause and do some more research before investing.
- Watch out for fake websites and apps. Scammers may create fake cryptocurrency trading platforms or fake versions of official crypto wallets to trick their victims. Be aware of slightly altered domain names or similar designs of the real websites or apps when determining if it is fake or not.
How To Avoid Cryptocurrency Scams
Scammers are always finding new ways to steal your money using cryptocurrency. In addition to the tips above, here are some more things to know to steer clear of a crypto con:
- Only scammers demand payment in cryptocurrency. No legitimate business will require you to send cryptocurrency in advance.
- Only scammers will guarantee profits or big returns. Don't trust people who promise you can quickly and easily make money in the crypto markets.
- Never mix online dating and investment advice. If you meet someone on a dating site or app who wants to show you how to invest in crypto or ask you to send them crypto, that's a scam.
Before you invest in crypto, search online for the name of the company or person and the cryptocurrency name, plus words like "review," "scam," or "complaint." See what others are saying.
When You Encounter a Scammer
If a scammer contacts you, the best thing you can do is ignore them—don't answer their calls, delete their emails, and navigate away from a sketchy-looking site. You should never give anyone information or send them money until you are sure they are legitimate. If a scammer has contacted you, you can also report them to the FTC to help stop them from reaching out to you or others.
If you've sent money to someone you believe is a scammer, it's best to act as soon as possible. Cancel the card, call your bank to inform them you believe your account information has been stolen, or reach out to an administrator or helpline for the account. If the scammer has your sensitive information, such as your social security number, this site from the FTC can help you know what to do next.
Scammers constantly change and refine their attempts to take your money or information. To learn more about the recent scams that have been reported and to see more tips for keeping yourself safe, you can visit the FTC's website.