Cryptocurrency scams: How DO YOU PROTECT YOURSELF?
table of contents ABOUT Crypto 01 What is cryptocurrency? Scams 02 ACrypto quick review of why cryptocurrency fraud and scams are on the rise.
03 Types Kinds of cryptocurrency scams.
Protecting Yourself 04 Learn how you can keep yourself and your financial assets safe while purchasing crypto.
WHAt Is Cryptocurrency? ● A type of digital, electronic, or virtual currency, cryptocurrencies can be used to purchase goods and services online. ● It is secured by advanced encryption techniques and employs blockchain technology to maintain a ledger of transactions across a decentralized, distributed network. ● Transactions are not controlled by central parties, governments, or individuals.
Why Are Scams On The Rise? Do you know that crypto scams and fraud have risen by 1000% since October 2020? As per our review of the arena, it is mostly because: ● Bitcoin, dogecoin and ethereum prices have soared like never before. ● Lesser regulations and rising interest in cashless transactions. ● The nature of cryptocurrency guarantees anonymity to buyers and sellers. This has attracted the attention of fraudulent individuals out to make a quick buck.
TYPES OF CRYPTOCURRENCY SCAMS
1. bUSINESS/INVESTMENT scams In such types of scams, companies or individuals come up with shady schemes and spam you with messages to invest in them. They ask you to pay in crypto for better discounts and offers. However, these turn out to be fake promises, since they take off as soon as they get your payment.
2. JOB SCAMS Scammers and fraudsters seek out job seekers and offer them a lucrative salary to help them mine or convert cash to bitcoins. After spamming you with messages, they go underground once they get you to pay a fee. They also often make big claims and assure you that you will be paid in bitcoins once the business takes off.
3. Phishing Scams In the world of cryptocurrency, phishing scams usually involve targeting the private keys of crypto wallets which give one access to personal crypto funds. To gain access to these funds, fraudsters send spam emails with malicious links to crypto holders. Once the user clicks on them, they may be asked to enter their private information. The scammers then use the data to siphon away funds.
4. CELEBRITY Impersonation Scams Did you know that hundreds of cryptocurrency scammers have made a fortune by pretending to be Elon Musk? That’s right! Don’t take all celebrity tweets and posts on social media platforms at face value because there have been instances where accounts of VIPs have been hacked to lure people to deceptive, spammy crypto websites!
Protecting oneself From Crypto Fraud As highlighted at several global finance events, DeFi (Decentralized Finance) scams are on the rise. To keep oneself safe, one must practice cyber hygiene and review the cybersecurity measures they have been taking. Here are some additional tips to keep yourself safe while trading in crypto: ● ● ● ● ● ●
Be wary of suspicious links and spam emails. Don’t click on them! Join trustworthy crypto communities and learn which exchanges are safe for trading. Do ask for reviews and recommendations from people you trust. To begin investing, always bank upon exchanges that require offer multiple user authentication gateways. While there are countless cryptocurrencies to choose from, always do your homework before you decide to invest in a digital currency that’s been launched recently. Change your wallet’s password every 2-3 months to keep fake/fraud transactions at bay. Take online advice and tips with a pinch of salt!
Thank YOU! This presentation was prepared by: Nitika Sharma Manager, Money 2.0 Conference https://www.money2conf.com/
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