{"id":80261,"date":"2024-09-25T15:32:09","date_gmt":"2024-09-25T10:02:09","guid":{"rendered":"https:\/\/www.the-next-tech.com\/?p=80261"},"modified":"2024-09-25T15:32:09","modified_gmt":"2024-09-25T10:02:09","slug":"cryptocurrencies-scam-and-safety","status":"publish","type":"post","link":"https:\/\/www.the-next-tech.com\/blockchain-technology\/cryptocurrencies-scam-and-safety\/","title":{"rendered":"How to Stay Safe and Avoid Scams with Online Tokens and Cryptocurrencies"},"content":{"rendered":"

According to the FBI, cryptocurrencies scam and safety costs Americans more than $5.6 billion in 2023 alone. Roughly half of these concerned investment fraud, with other dirty tricks including extortion, identity theft, and tech support<\/a> ripoffs.<\/p>\n

Here\u2019s how you can avoid falling into similar traps.<\/p>\n

Safeguard Your Private Keys<\/h2>\n

First things first, before we even think about potential scams, you should understand some simple cybersecurity concepts, like public and private cryptocurrency keys.<\/p>\n

The security of your assets is inextricably linked to how safe you keep your private keys. If anyone gains access to them, it\u2019s game over. As such, they should ideally be stored in a safe and kept apart from your cold storage hardware.<\/p>\n

Use a Secure Cold Storage Wallet<\/h2>\n

On that note, taking your cryptocurrency offline is a top priority. \u201cNot your keys, not your coins\u201d has become a clich\u00e9 for a reason. You must have self-custody of your assets. Or, in other words, keep them in cold storage.<\/p>\n

It\u2019s a major risk centralized exchange, they are at risk. It\u2019s that simple. Should the exchange be hacked, you can lose the money. Alternatively, they could suddenly deny any withdrawals, as we saw in the case of FTX.<\/p>\n

Read up on the most reputable cryptocurrency wallets<\/a> and invest in some hardware to keep your digital assets as safe as possible.<\/p>\n

Avoid Get Rich Quick Schemes<\/h2>\n

Okay, let\u2019s talk in more detail about avoiding crypto scams. The FBI reported approximately 69,000 such cases in 2023, around half of which were related to investments.<\/p>\n

It\u2019s incredibly easy for scammers to use social media platforms like Facebook to push fake adverts promising quick returns on investment. Often, they\u2019ll try to use famous people in the world of technology, such as Elon Musk, to promote them.<\/p>\n

Even if they\u2019re not using celebrities, it\u2019s not difficult to set up legitimate-looking profiles on LinkedIn or other platforms, to create the image of a reputable business person. Make sure you research the people involved throughout and find testimonials from real people.<\/p>\n

The bottom line with \u201cget rich quick\u201d investment opportunities is this: if it looks too good to be true, it almost certainly is.<\/p>\n

Avoid Urgency<\/h2>\n

If the person contacting you is trying to apply pressure \u2013 perhaps with an \u201cexclusive\u201d or \u201climited time\u201d opportunity, it\u2019s important to take a step back. That is a common trick when someone is running a scam.<\/p>\n

They\u2019re trying to make you abandon your senses and stop thinking critically. Always take plenty of time for any decision that involves sending cash or cryptocurrency. Speak to your family, business partners, friends, or colleagues, and take the time to do proper research first.<\/p>\n

Verify Company Information<\/h2>\n

Part of the due diligence process is to verify any information provided to you directly with that company. For instance, if you\u2019re telephoned by someone claiming to be from your bank, take their name and title, then end the call.<\/p>\n

Look up the relevant number and call it yourself. Ask to speak to the named person in the department they claimed to be from. This way, you can be sure you\u2019re not falling victim to a hoax.<\/p>\n

If you\u2019re not already familiar with the company, you\u2019ll need to put in some research. If you\u2019re not finding much information, it\u2019s most probably a scam.<\/p>\n

Do Your Research<\/h2>\n

This is true of anything involving money<\/a>. You must investigate the people and companies who\u2019ve contacted you properly, performing thorough due diligence.<\/p>\n

You\u2019re aiming to establish whether the company and people who contacted you are real. And whether or not you can find people who\u2019ve already been successfully involved in whatever is being proposed.<\/p>\n

Don\u2019t Believe Everything You Read<\/h2>\n

When performing your research, you must speak to real people that were already involved. It\u2019s not enough to simply read a testimonial, as plenty of what you\u2019ll see online isn\u2019t real.<\/p>\n

Around $8.2 billion is spent annually on affiliate marketing in the US alone. This is where a third party, or \u201caffiliate\u201d of a brand, pushes products and services on behalf of the company.<\/p>\n

You\u2019ll read a review of a product, for example, that makes you think it\u2019s worth purchasing. Then you click a link to the relevant website and complete the transaction.<\/p>\n

The problem is that content creators are financially incentivized to exaggerate, or even lie completely about what they\u2019re selling. For example, an iGaming writer<\/a> could intentionally overlook a casino\u2019s security failings, getting you to focus on the generous welcome bonus or fun games.<\/p>\n

With that in mind, it\u2019s hard to trust what you read online. It\u2019s much safer to speak about a possible investment with a real person who has already been involved.<\/p>\n

Ignore Extortion Attempts<\/h2>\n

Extortion is responsible for a significant chunk of those 69,000 cases of cryptocurrency fraud, according to the FBI. Yet these scams are almost always extremely easy to spot.<\/p>\n

Watch out for seemingly detailed, but very vague emails, for example. They tend to focus on subjects that many people are likely to have taken part in, making it seem very personal.<\/p>\n

Extortion attempts usually claim to have compromised your device and logged your activity, often on adult sites or something equally embarrassing. But they never specify any hard facts, such as times, dates, or locations.<\/p>\n

They will, of course, demand payment in cryptocurrency. But these scams are just the modern-day equivalent of the Nigerian prince, and can easily be disregarded.<\/p>\n

Don\u2019t Give Out Your Credentials<\/h2>\n

This should be obvious, but people consistently fall for it. One of the most obvious tell-tale signs of a phishing scam<\/a> is when you\u2019re asked for a username or password. Never, under any circumstances, hand over your usernames or passwords.<\/p>\n

If you receive an email that links to a web form, check the URL carefully. Make sure that it\u2019s not a homograph attack, where letters are subtly switched.<\/p>\n

For instance, the address might use the Cyrillic letter \u0430 instead of the Latin a, diverting you to a fake site that will trick you out of handing over valuable information. These incredibly subtle tricks are much easier to fall for.<\/p>\n","protected":false},"excerpt":{"rendered":"

According to the FBI, cryptocurrencies scam and safety costs Americans more than $5.6 billion in 2023 alone. Roughly half of<\/p>\n","protected":false},"author":5087,"featured_media":80263,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[135],"tags":[49206,49202,49209,5979,49210,49204,49208,49205,49207,42812,49203],"_links":{"self":[{"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/posts\/80261"}],"collection":[{"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/users\/5087"}],"replies":[{"embeddable":true,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/comments?post=80261"}],"version-history":[{"count":2,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/posts\/80261\/revisions"}],"predecessor-version":[{"id":80266,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/posts\/80261\/revisions\/80266"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/media\/80263"}],"wp:attachment":[{"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/media?parent=80261"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/categories?post=80261"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/tags?post=80261"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}