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Safe Investing (1/3)

20.01.2023

Understanding & Avoiding Crypto Scams & Fraud 

 

Being always focused on our community’s well being, we have made it a regular practice to educate everyone on the benefits and risks of investing in crypto. With this, safety and security always come first

 

The digital investment space is no stranger to scams, fraud and other malicious activities that can get very ingenious and persistent. Best is to be aware and knowledgeable about such potential threats and keep your funds and account safe. As a fully regulated and licensed crypto exchange, Coinmetro is providing access to a safe investment space. Read on to find out about some of the newest crypto scams and frauds and how to avoid them.

 

 

Crypto Scams Are Getting Smarter

Cyber attacks and scams never cease to innovate. Recently, new ill-intended schemes have been doing harm to the unsuspecting, so everybody in the space needs to be aware. We will be talking about new types of Vishing and Phishing attacks, Verification Code scams, Customer Service Impersonation and Fake Social Media attempts. Read on to learn how to recognize and avoid these schemes.

 

Vishing Attacks

Vishing, or voice phishing, is a type of scam that involves attackers using phone calls or voice messages to trick victims into giving away sensitive information, such as login credentials or financial information. In recent years, vishing has been one of the most common crypto scams.

 

One of the main ways vishing attackers operate is by posing as a trusted entity, such as a government agency or a cryptocurrency exchange. They may use spoofed phone numbers or caller ID information to make it appear as though the call is coming from a legitimate source. They may also use social engineering techniques, such as urgent language or high-pressure tactics, to convince victims to take immediate action.

 

To protect yourself from vishing scams, it’s important to be vigilant and skeptical of unsolicited phone calls or voice messages. Don’t give out personal information over the phone, and be especially wary of calls or messages asking for your login credentials or financial information. Also, don’t click on any suspicious links sent to you via phone calls or text messages.

 

New Phishing Scams

One of the newest phishing scams to emerge is the “cloud mining” scam. This scam involves a website or company promising to mine cryptocurrency on behalf of the victim. The targeted person is required to pay a fee or invest in the company, with the promise of getting back profits. But the mining never takes place, and the victims ultimately lose their investment.

 

Another emerging scam is the “fake wallet” scam, where a hacker creates a fake version of a legitimate cryptocurrency wallet app and convinces victims to download it. Once the victim enters their private keys into the fake app, the hacker can access their funds.

 

Beware – some fake wallet apps may look identical to the authentic platform they impersonate, making them very hard to distinguish at first glance. To avoid falling victim to a fake wallet crypto scam, it is important to only download and use reputable wallet apps from official app stores or the website of the cryptocurrency project. You should also be cautious of any unsolicited offers or requests for access to your wallet or private keys. It is also a good idea to enable two-factor authentication on your wallet and to regularly check for updates and security alerts from the wallet provider. 

 

Verification Code Scams

In this type of scam, a hacker will impersonate a legitimate cryptocurrency exchange or wallet service and request that the victim provide a verification code they just received via email or phone. If the victim believes the request to be legitimate and provides the code, the hacker can then use it to gain access to the victim’s account.

 

To protect yourself against verification code scams, always verify the authenticity of a website or company before sharing personal information or sending funds. Never provide a verification code to anyone unless you are certain they are legitimate. Additionally, you can use two-factor authentication, which adds an extra layer of security to your account.

 

Customer Service Impersonation

Customer Service impersonation is a type of scam in which a hacker poses as a customer service representative from a legitimate cryptocurrency exchange or wallet service in order to gain access to a victim’s account. The scammer will typically contact the victim through email, phone, or social media and request personal information, such as login credentials or ID information.

 

Learn to recognize customer service impersonation scams early on! Make sure the website or company in question is authentic. Never provide personal information to anyone unless you initiate the contact and are certain they are legitimate. As a general rule, Customer Service teams rarely request personal information out of pure initiative, except for when you perform KYC and other regulated verification procedures.

 

Fake Social Media Scam

Social media platforms have become a breeding ground for scam artists. One of the most prevalent scams on these platforms is the fake social media post crypto scam.

 

This scam typically involves a fraudster creating a fake social media account, often impersonating a well-known figure, such as a politician, a celebrity or a businessman (like Barack Obama, Elon Musk, etc). They then post fake information about a new cryptocurrency or investment opportunity, promising huge returns. However, these opportunities are usually completely fake, and anyone who invests in them is likely to lose all of their money.

 

It’s important to be vigilant when using social media and be wary of any investment opportunities that seem too good to be true. Be sure to check the veracity of the account and the news they are sharing and report fake accounts when you spot them.

 

 

How to Keep Your Crypto Safe 🔒

As crypto cybercrime is taking new shapes every year, safety and security practices must become a natural part of your investment. Read on for important things worth knowing and applying in order to increase the security of your account and keep the bad actors at bay.

 

  • Keep your software and devices up to date. Outdated software and devices can have vulnerabilities that hackers can exploit. Make sure to install updates regularly to protect against potential threats. Always access your account via protected and verified Internet connections.
  • Trade and invest with a regulated and compliant crypto exchange. By using a fully regulated exchange, you can be sure that the entity is operating in accordance with the laws and regulations in place. This can provide a level of protection and assurance that your funds and personal information are safe.
  • Use two-factor authentication. Two-factor authentication adds an extra layer of security by requiring a second form of verification, such as a code sent to your phone, in addition to your password.
  • Use unique and strong passwords for your accounts. Never reuse the same password for different accounts. Also, never click on links from unknown or suspicious sources, especially if you are not expecting an email from that sender.

 

Coinmetro – A Safe Gateway to Crypto & Fintech

We have been saying this from Day 1 – regulation is the future of crypto. In the wake of global crypto adoption, user’s safety comes first. Being a fully-licensed crypto exchange, we’ve always been regulation-driven, seeking legitimacy and successfully representing it. We are convinced that regulation will give crypto the legitimacy it deserves and will open many more doors that for now remain closed. 

 

While part of the team is working hard on the products that make you a better trader and investor, Kevin and others are actively working with regulators and SRO (Self-Regulatory Organizations) across the globe to push for a more inclusive financial space where users are protected and markets are safe for all. Read more below to find out about the licenses Coinmetro holds and the verification practices we run to ensure your favorite crypto exchange remains free of scams and frauds:

 

Coinmetro – A Safe Gateway to Crypto

 

To learn more about hacks and crypto fraud attempts, dive deep into our Learning Lab where we have specialized curated content making your crypto journey safe, meaningful and productive:

 

How to Stay Safe and Invest with Confidence

 

Common Crypto Scams – How to Avoid Them

Stay safe and stay close to Coinmetro for the long run! Join our Discord and Telegram channels to chat, learn and have fun. To become a user today,  Sign-Up now, or head to our new Exchange if you are already registered and experience our premium trading platform. Should you need any help, feel free to reach out to our world-class Customer Support Team via 24/7 live chat or email at hello@coinmetro.com.