cryptocurrency scamRepresentative picture

Despite regulatory skepticism, the crypto craze is rapidly increasing in the country. As crypto assets continue to attract the attention of investors around the world, they have also become a target for scammers who are looking to make some easy profits by exploiting individuals who will do anything to get rich quickly.

Research by electronic exposure firm Tenable found that scammers are taking advantage of hacked YouTube accounts to promote fake crypto giveaways for Bitcoin, Ethereum, Dogecoin, Cardano, Ripple, Shiba Inu, and other cryptocurrencies. According to Tenable, across a subset of YouTube Live scams encountered in October 2021 alone, scammers stole at least $8.9 million USD.

“The Bitcoin scams I monitored received $8.2 million in stolen funds, with an average of $1.6 million per scam. Ethereum scams received $413K in stolen funds, receiving an average of $82,778. US$ per scam. Finally, Shiba Inu scams earned $239K in cash, and earned an average of $34192 per scam,” said Satnam Narang, Personnel Research Engineer at Tenable.

Scammers taking over legitimate YouTube accounts to promote fake crypto giveaways are nothing new. However, individuals are still deceived by scammers.

Types of coding scams and how to spot and avoid them

One should pay attention to crypto products that offer enviable returns.

“Scammers promise very high returns that are not backed by the fundamentals. This is a big red flag and often goes unnoticed by many who switch to crypto to make a quick profit. Phishing emails are widely used to lure gullible investors into offering credentials. “

According to Shashi Jha, Head of Legal Affairs and Compliance at WazirX, scammers or scammers often make credible promises and sometimes even dive into the crypto space using online anonymity to their advantage.

Some of the most common scammers’ tactics are:

crook

In such scams, fraudsters often imitate government officials, companies or well-known individuals. These types of scams are committed using paper money. Scammers understand that users place a lot of trust in influential voices. So they created fake videos showing the founders and co-founders of cryptocurrency as well as notable individuals associated with crypto companies or corporate CEOs who promoted the use and/or discussed buying cryptocurrency for their corporate budgets.

Read also | Crypto Bill 2021: 5 key questions about crypto ads, scams, taxes, and more answered by Nirmala Sitharaman

“The best way to spot a scam account is to assess the returns you will get. If the crypto offer sounds too good to be true, that is the only red flag you need because it can be scam,” Jha said.

cloning sites

This can be considered the most common scam that can occur. However, anyone can stop falling prey to such scams by making suggestions that can depict whether a website is legitimate or not.

“If there is no lock icon in the URL bar, the site is not secure. Another thing to watch out for is, if the individual is switched from one site to another while payments are being made. A redirect link may appear to be a legitimate site; however, a closer examination of the address reveals URL that the phone URL contains a zero instead of the letter “o.” As a result, ensuring that the exact URL is entered into the browser with double verification becomes critical,” Jha said.

Romantic tricks

These online dating scams are exploiting to lure people into cryptocurrency investment scams.

Jha said that to prevent falling victim to a romance scam, one should never send money, trade or invest on the advice of someone meeting on the Internet, and never talk about financial situations with strangers.

“Ensuring that you do not fall into the trap of individuals who claim to have exclusive investment possibilities is very important as scammers try to push through the act as quickly as possible. One can be reassured about a scam if a caller, love interest, organization or anyone else asks to send crypto To their wallets.Jha also said, one should always avoid giving out sensitive or personal information to strangers online.

It is also important to be careful and cautious before investing in cryptocurrencies. If something doesn’t look right or doesn’t add up, trusting instincts can also help.

How to check if a coding project is genuine or not?

One of the simplest ways to gauge the honesty of any coding project is to take a look at the core team behind the project. This is something that will be available on the official website of this project.

“Most real projects will include the details of their core team members and LinkedIn profiles,” said Edul Patel, CEO and co-founder of Mudrex, a global algorithm-based crypto investment program.

Patel further said that the following checklist may spend some time on the project’s official website. If the website is only talking about buying a crypto token and how it will earn 100x over the next few days, this is a definite red flag.

Another key checklist is to check out the project’s social media channels. All crypto projects are active on some social media platforms. He added that if a Twitter profile appears to be dead or has some posts over the past few months, that should be another red flag.

What to do if you are already a victim of a crypto scam?

Currently, there are some organizations that one can report if they have actually been scammed. The first of those things, Patel said, would be to contact the exchange or platform where the scam occurred. The US Securities and Exchange Commission will be another organization where investors can report fraud.

In India, there is no official platform to complain about cryptocurrency scams. However, you can report to cryptocurrency exchanges that deal or invest in cryptocurrency.

How to increase the chances of not losing money while investing in cryptocurrency?

“One of the most important steps to prevent exposure to fraud is to do some due diligence before investing. Although it may be important for some, this goes a long way in preventing exposure to fraud in the crypto ecosystem,” Patel said.

Data on all crypto projects on websites such as Coinmarketcap, Coingecko and Messari is freely available. Investors should try to avoid projects with very low market value.

No one should fall prey to similar websites and not share their login password details over the phone. Two-factor authentication enabled by Google Authenticator or password managers is a secure option to avoid password thefts.

Hardware wallets are more secure than hot wallets. Chandra suggested that if you understand the basics of managing public and private keys, then turn to hardware wallets to improve the security of your digital assets.

A good starting point should be to invest in coins with a market capitalization of over $100 million, Patel said, as well as all basic safety checks.

Get live stock quotes from BSE, NSE, US market and latest NAV, mutual fund portfolio, see the latest underwriting news, best IPOs, calculate taxes with income tax calculator, see top market gainers, top losers and best stock funds. like us Facebook social networking site and follow us Twitter.

Financial Express is now available on Telegram. Click here to join our channel And stay up-to-date with the latest Biz news and updates.

Source link

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *