Cryptocurrencies are considered to be the future of finance. The technology underlying them is blockchain, which makes for secure and fast transactions across borders without any intermediary.
But cryptocurrencies aren’t all that they’re hyped up to be. With increased popularity comes increased chances for scams and other criminal activity.
Scams can be particularly insidious because they often appear legitimate at first glance. So how do you tell if a crypto-related investment opportunity is for real?
While you can never be too careful when it comes to your finances, there are ways to spot a scam before you get involved with it. Using a hardware wallet, you can keep the keys to your crypto offline, and learn to ignore and report scammers by following the tips below.
What types of crypto scams exist?
There are many types of crypto scams out there. The most common include:
1. Pump and Dump Schemes: Fake coins get pumped up through false and misleading statements, and then dumped on unsuspecting investors, who then lose their money. These schemes rely on the tendency of human nature that causes people to want to get rich quickly. They also rely on greed. Greed is what keeps these pump and dump schemes running.
2. Mining Scams: These often take place on Telegram groups and Discord channels where users ask for a mining rig recommendation or help setting up a miner. A scammer replies with an offer of free hardware if users send them a certain fee first using PayPal or Bitcoin as their payment method.
3. Fake/Impersonator ICOs (Initial Coin Offerings) Similar to the pump and dump scheme, an impersonator ICO has its own website and social media accounts, but they are set up to look like a well-known ICO. The goal is to steal your information and money through phishing schemes. Many of these are designed to draw investors in with the promise of big returns and then disappear, taking all the money raised along with them.
4. Cryptojacking: Cryptojacking is the secret backdoor entrance of hackers into your computer to mine for cryptocurrency. A website operator or Internet service provider (ISP) secretly embeds mining code into a website and uses the site visitor’s computing power to mine cryptocurrency. This is often done without the visitors’ knowledge and can slow down their computer, and in some cases, damage it.
With the above in mind, what are the best ways to spot a cryptocurrency scam?
How to Spot a Crypto Scam
- If it sounds too good to be true, it probably is. There are many types of scams out there, but the basic idea is to take your money. Be wary of anyone who promises a quick and easy fix to your problems. There’s no such thing as a free lunch, or a magic money machine, or an easy way to make millions online.
- Misleading or suspicious details, such as the sender’s email address. When you receive an email, look at the information in the “From:” field. If there is something wrong with this address (for example, it is spelled incorrectly or contains odd characters), do not click on any links. The links in the email would lead you to a fake website which looks identical to the original and asks for your personal details.
- No information or communication. Scammers are not legitimate businesses. They don’t have a help desk or customer support department to take your call. But they do have a method of communication, which is typically email addresses. The scammers will usually reply back to you, but it’s difficult to know whether or not the ‘customer care’ employee is real or fake. Scammers often use hidden webpages, disposable email addresses, and phony phone numbers to hide their true identity.
- Fake team members. Scammers have a website, blog, social media account, etc which uses stock photos of fake team members. They have random names and bios listed on their “team” page with no relation to the actual business they claim to operate. It’s a trick to make their company look like it’s bigger and better than it actually is.
In a digital era where vulnerabilities are quick to be exploited, who can we trust to protect us from theft and human error?
That’s where UKISS Technology comes in.
Although we may not be able to completely eradicate crypto scams, we can reduce the risk of your digital assets from getting stolen.
With our patented UKISS Hugware™ technology, you hold both your key and the vault in your hands.
UKISS Hugware™ is an all-encompassing unique pair of personal cryptographic key management devices. It’s more than a crypto hardware wallet solution. It is also the gatekeeper of your personal data. UKISS Hugware™ is compatible with other digital wallets and over 1,000 cryptocurrencies.
Each Hugware™ solution arrives as a pair of hardware security devices. These 2 keys keep the power in your hands. An authentication key (A-Key) safeguards your crypto assets’ private keys as well as your sensitive data and documents. While a hassle-free rescue-key (R-Key) recovers your password and private keys in a breeze.
Stay tuned for information about the launch date of our revolutionary crypto hardware wallet!
About UKISS Technology
UKISS Technology is pioneering the next-generation cryptosecurity wallet that is simple, safe, and secure to use. Their technology has also been granted patents in most major markets including China, the United States, Europe, Asia, and India. Their clients include government ministries, leading medical healthcare providers based in the APAC region, and major FinTech players. For more information, please visit ukiss.io.