May 19, 2021, | AtoZ Markets – We’ve all no doubt heard or read about some variation of a dating horror story. Where a girl meets a boy via an online dating site. They talk for a few months, and D-day arrives and suddenly, the boy has fallen and broken his leg or has whipped up some other lame excuse to get out of the meeting. So, the burrowing begins. The girl soon finds out that the dreamboat she allegedly has been swooning over is in fact non-existent. Instead, she had been catfished by a former colleague whom she rejected previously. Bummer, right?
Recent statistics indicate that the crypto buzz has led to a record increase in the number of scams. Suffice to say that over 7,000 reported losses worth more than a staggering $80 million. As we write this, crypto scammers impersonating Tesla mogul Elon Musk have swindled an impressive $2 million.
It’s safe to say that scammers are resorting to dirty tricks to make money out of unsuspecting crypto users.
While in recent years scams have come under wraps, thanks to heavier restrictions, these architects, still find old and new ways of inching their way in. Nobody likes a ‘Cat Phish’. So, in today’s article, we bring you a guide on how to avoid these sorts of scams and have a trading journey filled with peace and ease of mind. Today, we’re taking a look at the most common scam types that can be found in the crypto world.
Fact or Fiction: Scams in all their Glory
Foreign exchange or crypto fraud is any trading scheme that is used as a mechanism to defraud traders. Trading scams often pitch “too-good-to-be-true investment opportunities” in a ploy to entice traders to part with their money. Where lack of experience is evident swindlers will try to exploit your enthusiasm, fear, and lack of knowledge. By arming yourself with the right information you are no longer an easy target.
The Most Common Scam Types
The “virtual/digital” landscape presents unscrupulous actors with more opportunities to convince uninformed or naïve traders to invest their money in risky investments. Such frauds can be accomplished through many different formats:
So, what are the most common scam types to keep an eye out for? Let’s have a look below:
There is an alarming number of websites that have been either set up to resemble the original or claim affiliation with online exchanges. If you can see a small lock icon indicating security near the URL bar and no “https” in the site address think twice.
Even if the site looks identical to the one you think you’re visiting, you may find yourself directed to another platform for payment. For example, you click on a link that looks like a legitimate site, but attackers have created a fake URL with a zero in it instead of a letter ‘o’. That platform, of course, isn’t taking you to the cryptocurrency investment that you’ve already researched. To avoid this, carefully type the exact URL into your browser. Double check it, too.
A common method in recent years is through the medium of email. The worst thing of all is that they are becoming more ingenious and harder to identify. Phishing scams of late are able to appear identical to the actual brand. Always verify the email address and ensure that it is legitimate to the correct source. If a source seems untrustworthy, do not provide information such as full name, address, or contact information. Always be aware of where your data is and how it’s being used. The devil is in the detail, always be sure to read the risk disclosure thoroughly.
Social media has presented an arena where “influence” has almost become a way of living. Everyone wants to have and be like the “it” celebrity. However, how do you know that the accounts that you are following are not imposter accounts? The same applies to trading, mischievous bots are rampant. Be hesitant of offers on social media in particular where there seems to be an impossible result. Furthermore, just because people engage doesn’t mean they aren’t bots.
Lastly, scammers are known to resort to fake mobile apps and websites. Just like emails, it is important to take extra care. Does the spelling seem a bit off or the wording less than professional? In the case of a website, does it include ‘https’ in its address? When it comes to making investments, it is essential to take extra care when it comes to the details.
So, while the digital asset world is the future of transactions; it is also important to exercise a degree of caution and proceed at an extremely guarded pace. This is especially true in scenarios that seem too good to be true. As a rule of thumb, it is important to keep in mind that if something seems too good to be true, it probably is.
Zeply & Security
Security is at the heart of everything we do here at Zeply. You can buy, sell, and store your bitcoin with complete peace of mind knowing that Zeply has integrated industry-leading safety features. For instance, we do not rely on the standard single authentication feature (typically a username and a password). However, we have added an extra layer of security by incorporating 2FA. Thanks to this feature, the security level is not only reliant on the strength of the password but also on an additional code that is sent to you via SMS. The completion of this additional feature ensures that you are the rightful owner of the particular crypto wallet.