Avoid common Bitcoin scams and keep your cryptos safe and sound
With cryptocurrencies investments are on the rise, there are also lots of scammers lurking around the corner. And if you’re not careful enough how to spot and avoid these scams, you may be losing more than you invest in. This time we’re going to discuss some common Bitcoin scams and how to avoid them.
Remember Ruja Ignatova? If that name doesn’t ring a bell, she is notoriously famous as the cryptoqueen, where she managed to pull of the biggest crypto scam in history, with a total of US$ 15 billion dollars goes to her pocket and then vanished. Back in June 2016, a 36-year-old businesswoman by the name of Dr. Ruja Ignatova walked on stage at the Wembley Arena in front of thousands of adoring fans. She told the cheering crowd that her coin, named “OneCoin’ was on course to become the world’s biggest cryptocurrency. She uses a method which is known as a ponzi scheme.
There are many methods that scammers use in cryptos, if you’re looking to start investing in Bitcoin, here are some heads up for you to spot and avoid one:
A Ponzi scheme is an investment concept developed by an Italian named Charles Ponzi in 1920. It’s a type of investment fraud that has been around for a while and a pretty common one that scammers use. It’s based on fake promises to investors. Scammers claim that their investments will be profitable at little to no risk. Scammers will ask people to invest and invite all their friends to invest more money, for the platform to make a profit. And due to the way Ponzi schemes are structured, the amount of money invested into the platform has to keep rising, otherwise, the scheme becomes unprofitable, and people start losing money.
Fake crypto exchanges
Previously cryptocurrency exchanges were the favorite for hackers. Fake crypto exchanges usually are in the form of mobile apps, but you may also find them as fake websites as well. Fake crypto exchanges will attract investors by offering free cryptocurrencies, low exchange fees, and even giveaways. An example of a fake exchange occurred in South Korea in 2017, where a crypto exchange called BitKRX managed to scammed crypto assets from its users. You have to be careful because some fake exchanges are very similar to the real ones. They may look legit at first glance, but their goal is to scam and steal your cryptos. So, how do you spot a fake crypto exchange? You might want to bookmark the real URL and always double-check before logging in. If it’s an app, make sure to verify the developer’s information and check the reviews first before you download it.
Who doesn’t love giveaways? Scammers use fake giveaways to scam you by offering something such as free cryptocurrency giveaways in exchange for a small deposit. For example, scammers will ask you to send some small amount of your Bitcoin or any cryptocurrencies that you have to an address so you can receive more cryptos in return. Fake giveaways usually found on social media platforms. The best tip to avoid fake giveaway scams is never to participate in giveaways that require you to send something of value first.
Fake crypto wallets
Another important thing that you have to be careful in choosing a cryptocurrency wallet. A cryptocurrency wallet is a place where you store your crypto assets. Therefore to avoid fake wallets, there are a few important things you should do beforehand, such as making sure the wallet app is made by a trusted developer. You can do this by checking the name of the developer whether it has an official company website, and the second is to read the reviews first.
Phishing methods does not only happen in the crypto world, but other industries such as finance, e-commerce, social media, and e-mail have reported cases of phishing scams. Phishing will usually take your personal information such as your telephone numbers, bank account, passwords etc. Make sure to properly safeguard your personal data by not giving personal information to anyone. One of the common cases of phishing in crypto is getting a call from an unknown number, and claiming to be from a certain crypto exchange. The caller will make an attractive offer on the condition that you ask for your personal identity. If you get a call like this, it’s most likely a phishing scam, and don’t hesitate to report it.
Investing in Bitcoin and other crypto-assets can be safe when done right and carefully. And choosing a safe and registered crypto platform is essential. PT Enkripsi Teknologi Handal (NOBI) is a registered Indonesian Company and a member of Indonesia Blockchain Association (ABI).
And when it comes to security, we take it really seriously as it is one of our foundations in building the NOBI app for the community. As we give a safe platform to all our users, so they can feel the ultimate experience of growing crypto. We also strongly advise all our users to secure their accounts by adding an extra layer of security. Which consists of activating Two-Factor Authentication (2FA) and filling out the Know Your Customer (KYC) form to verify their NOBI account.