How To Avoid Falling Victim to Crypto Fraud

It was inevitable that, almost from the day that Bitcoin launched, the scammers moved in. There are increasingly complex and convincing methods of crypto fraud – and they’re on the increase. To protect yourself from falling victim, you can take certain key steps. The first is to be aware of the sorts of scams that are out there. The second is to carry out due diligence when it comes to any form of crypto-based opportunity.

The latter is true of any kind of financial transaction. It’s from paying for items online to signing up for a new online casino. In online gambling, at least there are sites where you can check out the legitimacy of an operator. It gives you real peace of mind.

Typical crypto scams

The scams that you’re likely to encounter typically fall into two distinct categories. The first is a bid to gain access to a digital wallet or the key to access it. By obtaining the latter, they can also access other kinds of personal information. Sometimes, it’s also possible to remotely control hardware like PCs, tablets, and mobile phones.

The second is to persuade the victim to willingly transfer their crypto assets. They transfer directly to the fraudster by appearing as a genuine business. Online industries that rely on regular deposits, such as online casinos, are common targets. 

To avoid falling victim in this area, check out trusted review sites. For example, Casino.org Alberta lists legitimate providers and even enables residents of Alberta to claim bonuses. 

Impersonation

The increasing sophistication of AI has led to a relatively new form of scam. A recognized financial expert or influencer can recommend a scheme in which investing in cryptocurrency can lead to great rewards. In some cases, they even offer to match the initial investment to incentivize action. AI can look 100% convincing to draw in the unsuspecting. 

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Yet, you need to ask yourself whether this expert would really ask anyone to make such an investment. Almost invariably, the answer will be “no”.

Investment

Of course, it doesn’t take a fake celebrity endorsement to persuade some people to make a crypto investment. There are countless websites that offer guaranteed profits – something that the general volatility of crypto can never really promise.

The most common of these invites crypto holders to transfer their assets to a new exchange or platform. Once transferred, the platform continues to operate for a while, showing the promised high returns. It encourages further investment until the account is locked suddenly, and there are demands for taxes or fees to regain access to the invested cryptocurrency. So the principle has to be that if it looks too good to be true, it probably is.

ICOs and NFTs

There are millions of people out there kicking themselves that they never bought Bitcoin in the early days. It means many are looking to get in on the ground floor with any other initial coin offerings. There have been many cases of fake websites trumpeting about the new cryptocurrency that will take off as soon as it’s launched. Equally, the recent upsurge in interest in NFTs means that these have also been increasingly offered to illicitly obtain cryptocurrency from unsuspecting would-be investors.

Blackmail and coercion

Our final example is perhaps the most unpleasant of all of the scams. In this, the fraudsters will threaten to expose the victim’s use of certain adult and other sites to all their email and other contacts, often with the threat of using video footage gained by remote camera control. Demanding payment by untraceable cryptocurrency is plain and simple extortion. Unfortunately, many people fall for the false threats.

Protecting yourself from crypto crime

If this all sounds very frightening and doom-laden, it needn’t be. Millions of us continue to invest in cryptocurrency without being scammed or cheated. If you want to avoid it yourself, there are a few key principles to follow. First, you should check out the credentials of anyone or any organization making you an offer they say you shouldn’t turn down. The second is to never give out personal details or your cryptocurrency keys. The third and final one is to never accept any free money or crypto offers. Stick to these, be on constant scam alert, and be ok. 

At the end of the day, it really comes down to applying some common sense to the way that we deal with our cryptocurrency. It’s also worth remembering that, unlike traditional financial institutions, there won’t be any safety net if things go wrong.