In the past ten years, the cryptocurrency market has evolved into a veritable goldmine, offering investors, traders, and even crypto criminals the opportunity to amass an enormous fortune.
In the past few years, many crypto coins have flooded the cryptocurrency market, with bitcoin maintaining its position at the forefront of the sector.
The bitcoin price shot through the roof on November 10, 2021, reaching a new all-time high of $69,000. Despite this, cryptocurrency fraud remained at the forefront as one of the most prominent causes of cryptocurrency loss. In the middle of the previous year.
Commission recorded the greatest loss ever caused by fake cryptocurrency scams. The value of the stolen cryptographic asset was $82 million, which is ten times more than the prior report stated. With the number of cryptocurrency frauds hitting an all-time high, now is the time for crypto investors and traders to educate themselves about the threats they face.
The following are some examples of popular fake bitcoin scams that you will likely come across, along with the ways to avoid them.
5 Most Common Cryptocurrency Fraud
If you are interested to know what are some crypto scams? The list of the 5 most common is stated below.
- Fake Websites
Swindlers will use them as one of the primary methods to get away with stealing your cryptocurrency. They will create a fake website with a very similar layout and design as genuine websites—the domain name, the company name, and almost everything else that authentic websites have.
Scammers will almost always utilize fake bitcoin domain names to trick you into falling for their elaborate schemes. The appearance of domain names is comparable to that of the initial websites. However, how can you determine the difference between a bogus domain and a legitimate one? By taking your time to examine seemingly insignificant aspects carefully, you can uncover hidden dangers.
- False Apps
Scammers often employ fake mobile apps to defraud fake cryptocurrency users. These mobile apps deceive customers into thinking they’re using the app so that thieves may steal their digital wallet information.
- Scam Giveaways
Social networks promote cryptocurrency giveaway schemes. These giveaways usually come from crypto celebrities or notables. Scammers claim to multiply or similar cryptocurrency sent to them through real social media profiles. Most giveaways have a time limit and seem to be once-in-a-lifetime opportunities.
- Email Scams
With the rise of crypto-based investments like NFTs and ICOs, scammers have more options than ever to steal your money. Scammers may send emails posing as a real bitcoin company with a limited-time offer. New cryptocurrency entrepreneurs may distribute unregulated tokens or mislead investors with misleading advertising.
- Shoplifting
Marketplace scams solicit users to deposit cryptocurrencies for online goods. Many eCommerce companies accept bitcoin as payment, making it easier for crypto fans to shop. But it doesn’t mean all cryptocurrency-accepting websites are legit. Scammers can create phony seller accounts or bogus websites to deceive buyers. After accepting orders, scammers shut down the website or sell fake goods.
5 Best Ways To Avoid Cryptocurrency Fraud
How do you prevent cryptocurrency scams? You can avoid cryptocurrency fraud by being proactive. The best 5 ways to avoid fake bitcoin scams are listed:
- Protect Your Digital Wallet
You’ll need a digital wallet and private keys to invest in cryptocurrencies like Bitcoin or make transactions. Any website or firm that requests your private keys is a fraud you should avoid. Never reveal your digital wallet’s private keys. And the best way to protect your digital wallet is to use VPN. As most of us use Google Chrome as the default browser, so it is relatively easy to set up a VeePN Chrome extension to make it easier for you to use. All you need is just download a VPN extension, add it to Chrome and enjoy free trial.
- Avoid Sus Emails
If you’re contacted about a ‘great’ bitcoin investment opportunity, it’s usually a scam. Never share personal information or log in to your digital wallet through suspicious email links. It’s certainly a scam.
- Check Frequently For Intruders
Always check your device, whether a phone or a computer, for any invasions. For instance, you may immediately identify the default programs while installing a new operating system on your PC. In the task manager, these default programs will launch automatically. By doing this, you can quickly detect any intrusions on your PC. Additionally, you may do this with all of your other devices.
- Perform Research
The most well-known cryptocurrencies are legitimate. However, research it if you’ve never heard of cryptocurrency. Check to see if there’s a whitepaper you can read, learn who controls it and how it functions, and check for real reviews and endorsements. Find an accurate and reliable list of sites and apps for cryptocurrencies to check for scams.
- Keep Your Cryptocurrency In Several Wallets
Like the proverb “Don’t put all your eggs in one basket,” You can establish as many wallets as you like to diversify your portfolio, with no cap on the number you can have. Due to the increase in fake cryptocurrency, having two or more wallets will increase your security.
Fake bitcoin scams are getting very common and dangerous; however, this digital investment platform’s growth is increasing daily.
Therefore keeping your cryptocurrency secure and protected is essential. Let us know in the comments if you have any tips on protecting cryptocurrency.