Have you ever heard of phishing and “rug pulling”? Learn how cryptocurrency scams work and learn how to overcome scammers.
In 2020, the FBI reported that cybercriminals stole more than $1.3 billion in cryptocurrencies between January and March. Considering that as of mid-2022 the market capitalization of all cryptocurrencies combined was just under $1 trillion, this is a considerable sum. So, if you are interested in Bitcoin trading, you can visit this website.
This article describes the most typical scamshow they work and the preventative measures you can take to save yourself.
The phishing scam
In a phishing scam, the scammer contacts a Bitcoin user through various means, such as email, SMS, instant messaging apps, social media or phone calls. It uses convincing tactics to impersonate a trustworthy platform or one of its representatives, making it difficult for the user to identify the scam.
The scammer’s goal is to convince the user to click on a link or provide their credentials, allowing them to access the user’s accounts and funds. It can use tactics such as offering promotions or creating a sense of urgency by claiming that someone has compromised the user’s account.
To protect yourself from this scam:
- Uses codici anti-phishing established by trusted platforms to confirm the legitimacy of communications.
- Do not click on links in SMS or emails unless that are not confirmed as legitimate.
- Do not enter your credentials anywhere other than the official apps and websites; visit the website directly.
- Assume anyone contacts you via instant messaging, social media, or phone is not a legitimate representative and do not provide him with sensitive information or PII.
Money transfer or withdrawal scams
In this scam, the scammer falsely claims that he or she cannot withdraw or send funds and asks the victim for assistance in exchange for a portion of the funds. He may ask for help in withdrawing actual funds into a wallet he controls, giving the victim access and claiming to have difficulty making transactions.
But the withdrawal will not be possible due to lack of funds for petrol expenses. The victim then sends cryptocurrencies to the wallet, but the scammer has a bot that quickly withdraws the transferred funds. Another tactic is to claim that you are in a country that is hostile to cryptocurrencies and ask the victim to purchase crypto on their behalf, but the remittance withdraws or is never received.
To avoid being a victim:
- It is essential to always conduct business in ethical and legal wayeven if the opportunity seems very profitable.
- Avoid engaging in illegal or shady activities, which may result in financial losses or legal repercussions. If the offer seems too good to be truesuch as someone giving you the seed phrase of a wallet and telling you to take the funds inside, it is best to exercise caution and consider the potential risks before proceeding.
Truffe rugpull
Scammers create carpets in the form of new cryptocurrency projects, such as De-Fi platforms or NFT projects that at first glance appear legitimate, with professional-looking websites, white papers, roadmaps and online communities. They start promoting the project as the next big thing and artificially inflate the price by using their funds to make purchases.
FOMO (fear of being excluded – fear of missing out) pushes victims to buy, but once there is sufficient cash exiting the project, scammers sell their assets, leaving victims with tokens or NFTs of little to no value. The term “rugpull” refers to how quickly this happens, as if the rug is being pulled out from under the feet of unsuspecting buyers. In many cases, the development team abandons the project and disappears.
You can avoid this scam if:
- Research any Bitcoin investments you undertake.
- Check the white paper of the project to ensure that it is original and not a copy of another project.
- Try to locate the project team and see if the identity of its members is known.
- Be careful about the investments they involve unrealistically high returns.
- Check stated affiliations or agreements with credible organizations and make sure there is supporting evidence.
Bitcoin scams they are a real threat to investors and traders. Many people have lost money to cryptocurrency scammers. However, you can follow the following tips to avoid falling victim to Bitcoin scammers.
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