There was a time when Cryptocurrency was not taken seriously, even though it had quite the potential in the digital world.
Now, fortunately, many big investors and businessmen understand the different ways in which they can utilize Cryptocurrency. The excessive profits are giving them the name of ‘Digital Gold.’
Now, when something gets the name gold, it will start having targets. Targets in the form of thieves, and when it is digital, they get the name of cybercriminals.
In the year 2021, cybercrimes in Cryptocurrency have seen a very uncomfortable surge. This is the reason why investors are backing away from Cryptocurrency, and the prices are eventually falling.
However, that is not a concrete solution because Cryptocurrency is here to stay.
Rather than backing away, we must try and understand the different scams and, overall, how to avoid these.
What Are The Different Cyber Crimes
Here are the different cyber crimes which are seeing a surge when it comes to Cryptocurrency. In short, this is how they are trying to get your digital currencies.
1. Fake Websites
This is one of the worst scams which you can witness.
Because at first, it looks like a very promising prospect, and you wouldn’t be wondering whether you are being scammed at all. They mostly target new Cyopto investors who are looking for new altcoins to invest in.
Generally, it comprises a very convincing website that will initially allow you to trade. They look like a legitimate site, and that is why people do not doubt them with the initial look.
They can either take away your credentials of the Crypto wallet since you are inserting that information in the domain. This is why you need a secure Crypto wallet that will not give access to anyone without multiple-step authentication like Quantumai.
They will even allow you to withdraw money from this site initially. But, that is just to prove their ‘credibility.’ Once that happens, you will no longer be able to withdraw the larger amount.
2. Fake Hype
This is another form of a scam that is luring over-excited Cryptocurrency investors. Cryptocurrency is getting more famous day by day, and now even big business tycoons like Elong Musk are investing in it.
This is why people are more interested, and it is becoming more mainstream now. But, with that comes an insane fear of missing out, which the cybercriminals are using to their advantage.
This will involve fraudsters hyping coins or Cryptocurrency websites through push emails and social media. At one point, investors see that hype so much that they start thinking it is genuine.
3. Fake Celebrity Endorsement
This is another way that cybercriminals try to attract vulnerable investors, who believe that missing out on a good deal will make them bad Crypto investors. There are excellent designing and editing tools, which can make very genuine-looking brochures.
While they also have deep fakes which make videos about celebrities talking about the different websites and Cryptocurrencies. Celebrities are the highest point of credentials, and we tend to believe any advertisement they endorse.
How To Protect Yourself
Trying to protect yourself from these scams is not as difficult as you think. The best policy is definitely prevention.
- Protect Your Wallet: There is nothing that needs more protection than the safe in which you are storing your money. So, ensure that you have multiple authentications and you are not saving all in one place.
- Do Not Fall Prey: Falling prey because you are in haste or you wish to gain too much profit in a short time is not the right decision. You have to place each step carefully and take more calculated risks. Most importantly, do not become a victim of every social media ad or flashy email display about Cryptocurrency.
- Do Not Entertain Calls: Out of nowhere, if someone is contacting you to sell Cryptocurrency, then you should definitely ignore that call. If you wish to invest in Cryptocurrency, then you will do that through proper research and your own learning. Something like Cryptocurrency as a whole will not require such approaches of cold calls.
- Invest Only When You Understand: When it comes to Cryptocurrency, you should definitely not make haste. This is a venture which needs proper knowledge, so take your time and understand. Most importantly, do not invest in anything which seems ‘too complicated and you do not understand.
Cryptocurrency is not a gambling venture, where you will take risk after risk and then let luck favor you. Before even dipping your toe in the Cryptocurrency world, you should know how to protect yourself.
Remember, it is a decentralized platform, and you are all on your own.