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As the crypto industry is booming, imposters or scammers take deep roots using different creative ideas, usually harmful to newcomers or even intermediate crypto users. They use advanced and common ways to do scam and to get your cryptos. So, we have covered all the common scams of crypto and how to avoid them.
Common scams in cryptocurrency
Twitter has been the roots of some of the biggest cryptocurrency scams wherein the hackers had hacked the official accounts of very famous personalities, businessman, politicians and have made tweets promising to double the amount sent to their wallets, the main thing which makes this scam easier for people to believe in, is that scammers even hacked the comment section and pinned scam comments influencing the newcomers (aka new traders) to deposit bitcoins and other cryptocurrencies in the greed of getting twice of it back. One such recent scam took place in 2020, where the hackers raised over US$110,000 in bitcoin.
Telegram – Very common way to scam in crypto
There are many ways scams take place telegram app, Direct Messages (DMs). Telegram is an app with different channels to spread up great content for free and paid for every domain, not just cryptocurrencies. Almost in 98% of cases, people who are messaging you first from their side will be scammers. They could offer numerous things, such as Signals, Account management services, Educational courses on crypto. My recommendation would be never to trust anyone messaging you first.
Let’s check out some ways of scam in telegram:
Pump/dump channels
Another way scams are done through telegram is by certain channels that perform pump on some coins. In this scam, the channel promises all the members to give them the coin name before they put whale’s money into it and pump it 400–500% or even 1000%, but this does not happen the channels buy the coins before and then use the FOMO to sell their profits, leading to huge dump and people almost blowing out their accounts.
Referrer
Some random person from nowhere will contact you by messaging you first. Start by saying some broke story and then finding a guy who starts managing his trading account by taking some fees and providing high returns. Maybe he/she show you some random review or even screenshots of withdrawal but never trust any of them. That will be the creative work by photoshop or video editing experts.
Random Talk in the Group
This is the brand-new way of scam creativity. When you are in any telegram group, you will see two random people join the group and start talking about the current topic. After few messages, they will start talking about shitcoin by labelling “Gem coin” or putting some spotlight over the random projects and pretending like severe traders to attract more new or random people to buy that coins from DEX (Decentralized Exchanges)
Attachment Files
The telegram application allows sending any file to anyone in any group. The file may contain a virus or programmed script that can scan every single folder on a PC or laptop, or mobile to get the data file containing your private key or seed phrase, which controls your cryptocurrency wallet.
Emails – Another common way to scam in crypto
There have been many instances where most newbies lose money by following the steps given to them in the emails. The hackers get your email addresses from a hacked database. Recently the ledger.com incident was the top lesson for everyone. The hacker got access to all database tables and collected an email address, along with personal details and put it over a public forum where anyone can access it. Now those email address holders getting spam messages every day.
ICO/IDO scams
Fake cryptocurrency as original by creating the same name with different contracts on a decentralised exchange like Uniswap, pancakes, sushi swap.
- Provide false liquidity,
- Not sharing proper content over official sites,
- No whitepaper,
- The team is associated with old scams etc.
For the list of the dead coin. Visit this website: https://99bitcoins.com/deadcoins/.
YouTube
YouTube has also been used to perform scams as anyone can put a video on it, so most of the time, the scams are done through fake promising of airdrops (very common). A scammer will upload a video with a title of 10000 ETH give away by showing Ethereum founder in the video talking about some random stuff about future development. Sometimes, scammers use promising video ads to attract crypto users while watching videos over YouTube.
DNS Highjack
This is the advanced concept of hackers where they do not contact you directly, but they try to get your private keys indirectly using famous and authentic websites. They highjack the website DNS, which redirect you to the scam site just like the original one where you will be asked to add your private keys with some instruction. Once you are provided with your private key, you know what will happen.
Not your private key, not your cryptocurrency
How to avoid common scams in crypto and protect your money?
As you can see, we have added several ways which are being used to scam people and get access to their funds by scammers. Here are the few steps you always take care of to stay on the safe side.
- Never blindly trust anyone. Always check everything and then decide to buy something from someone through cryptocurrency as the transactions are non-reversible.
- Try only big-named exchange, which has existed for a long time, such as FTX, BYBIT, and BINANCE.
- Always click on the real links while you are searching over Google, do not click on the Ads link.
- Bookmark the website and access it every time clicking on it.
- Make a knot of one thing, making money is never easy. You cannot buy a Lambo by putting 100$ in one day.
- Always avoid pump dumps, telegram channels and groups.
- Do not share any personnel information such as API keys, account details to random people or over the discussion forums.
- If scammed by any exchange, then block your bank account or credit cards, if any added or used to make transactions on it.
- Avoid account management services. Why one will manage your account? Does your bank account manage by someone else?
- Never download any attachment or telegram files, not even word documents.
- No ICO/IDO/IEO will tell you to deposit the funds directly to any address stated in any social media or messengers like Facebook, Telegram, Instagram, etc.
- In your inbox, always save the official email addresses of the exchanges by asking the real support from the website. When you add an official contact email, you will be 90% safe from being scammed.
Add our official email address info@allinonecrypto.app.
- Do not download crypto-related apps from any website; always use Google Play Store and App Store to download.
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