Ever since the public embraced cryptocurrencies, there hasn’t been a shortage of shady figures trying to reel people into different scams and frauds. This is actually an age-old phenomenon; a revolutionary piece of technology comes along, and people find newer and cleverer ways to defraud the public using that technology. 

So, nothing’s been different for our blockchain friend here. It’s actually a bigger threat seeing as cryptocurrencies are digital currencies that have little to no identifiable information tagged to them. Of course, this is among the major reasons why crypto was such a revolution; untraceable, undetectable, anonymous, and owned by no one! And since crypto isn’t regulated by a bank, cooperation, or a government department, it could be potentially a great opportunity for scammers if they know what they’re doing.

Thus, the reasons why it is considered such an amazing technology and essentially the future of our financial system are also among the vulnerabilities of this decentralised currency. But what if you knew how these scams worked? You could protect yourself from these attackers and scammers and keep your assets safe. Well, that is exactly what we’re here to explore!

Much like any other scams, crypto scams start off with someone reaching out to you, i.e. the scammer, and that could be for any number of excuses; for an investment opportunity, posing as someone else, and much more. Of course, the aim is to gain access to your digital wallet, or ideally, you just hand over your crypto assets to them. So, let’s take a deeper look into these crypto scams so you can safely navigate around them!

Whaling

A scam as old as time, someone pretends to be a member of a powerful organisation or a social activist, striving to help others and needs you to join their mission. This scammer will put weeks or years’ worth of time into upholding that fake image and creating a reputation in a community. Of course, the scammer and their important mission will disappear right after they gain access to your wallet or manipulate you into investing your assets with them. Let’s move on to the next common crypto scam people have experienced.

Extortion

Again, this a scam that we’ve all heard about way before crypto even became a thing. A person will claim to have sensitive information on you, which may be anything, and ask you for the private keys that are used to gain access to your wallet. Of course, after the blackmailer has ripped you off, the crypto will be untraceable, and it would be like it vanished into thin air. 

Shady Investments

Investing in crypto ventures is a risky business on its own, but when you’re in the hands of scammers, your assets just aren’t safe. It works a lot like whaling. The investment opportunity will feel like a lottery ticket, and make no mistake; the scammer will ensure you that this is a safe and very rewarding investment. After you’ve been manipulated into transferring them your crypto, the scammer, the opportunity, and everything else they promised you, will disappear.

Catfishing

One of the most embarrassing ways you could get crypto-scammed is getting ripped off on dating apps and websites in hopes of romance. People have been falling for these kinds of scams since the dawn of time. Most of them work by manipulating the target to transfer the scammer money because they need help in getting a sick relative treated or to get themselves out of trouble. 

Phishing 

A familiar hacking technique we’ve all heard about, phishing, is when malicious links are sent to targets. These links contain malware that can allow hackers to gain access to your digital wallets and steal your crypto. As time passes, these phishing scams have started to get clever and versatile; they can even be found on social media now. It is essentially a fake landing page where the target is manipulated into entering their credentials, which, of course, allows the hacker to gain access to the target’s wallet. 

Initial Coin Offerings (IOC)

This is among the ‘crypto-specific’ scams on the list. Startup crypto companies will offer something called an initial coin offering (IOC) in order to raise capital for their new coin. The way these scams work is by asking users to exchange their actual crypto assets, like Bitcoin, etc., with the company to get a discount on this new coin they’re launching. Also termed ‘rug pull scams,’ these scams will pull your world right out from under you, and these investors will disappear after liquidating the investments.

Crypto Exchange Platforms

Crypto exchange platforms are websites or applications where you buy and sell crypto. This is among the common attack points of hackers because getting inside users’ wallets or attempting to manipulate them is time-consuming and may not work. So, you have to ensure that you’re using a premium, secure and highly reputable crypto-buying platform like Voltcoins. Voltcoins offers users a variety of cryptocurrencies to buy from, including Bitcoin (BTC), LiteCoin (LTC), Ethereum (ETH), and Tether (USD). With an incredibly fast KYC process and seamless secured transactions, Voltcoins is worth the consideration! You get the option of buying crypto using credit card payments, bank wire transfers, and Interac! Place your order with Voltcoins now and partner with a trusted crypto-buying platform!

So, now that you’re familiar with exactly how these crypto scams work, you can take precautions to avoid them. Never fall for shady investments, no matter how rewarding they might seem, and always go for secure services when it comes to crypto.