Defend yourself against these types of cryptocurrency theft

By Pryanka B

Every year, millions of dollars’ worth of cryptocurrencies is stolen by cybercriminals around the world. This coin has become a very attractive target and as its value continues to increase, so does the interest of hackers to steal it. But all is not lost, as there are steps you can take to protect your investments.

According to the 'Seon' portal, dedicated to detecting computer fraud, these occur mainly during the conversion of fiat money into cryptocurrencies. Scammers use stolen credit card numbers to buy cryptocurrency, which can lead to chargebacks.

However, there are other ways in which cybercriminals carry out cryptocurrency fraud, taking advantage of the novelty of blockchain technology and the lack of regulation in some cases.

For the specialized portal, one of the main concerns is identity verification, since fraudsters use stolen or false identifications to evade KYC and AML (Know Your Customer and Anti Money-Laundering) controls.

Why is it important to protect yourself?

Fraud in the field of cryptocurrencies is a problem that is increasing and, according to the 'Better Business Bureau', ranks second among the worst scams for businesses in North America.

He also points out that the median loss from cryptocurrency fraud is $300 per customer, demonstrating the significant impact of these illegal activities on the consumer economy.

It also reveals that 32 percent of these scams involved the purchase or exchange of cryptocurrency for goods, services, or fiat currency and 23.4 percent involved the purchase of digital assets that were promoted as investment opportunities.

Modalities of Robbery

With the growing popularity of these virtual currencies, various forms of fraud have emerged. From investment scams to virtual wallet heists, crooks have found clever ways to take advantage of unsuspecting investors.

The 'Kaspersky' computer security page explains some of the most common methods hackers use to steal cryptocurrency:

Fake Websites

Criminals imitate exchanges or cryptocurrency wallets that often have domain names that are very similar to the original ones, but with slight variations. They can operate in one of two ways:

Phishing pages: all the information entered is leaked to the scammers

Steal steal: where the site apparently allows a small amount of money to be withdrawn, but more is invested once money, the site may close or reject the withdrawal request.

Inflate and Sell

In this modality, scammers promote a coin or token through social networks and email. Traders are attracted by the publicity and buy the coin, which increases the price.

The criminals then sell their own holdings, causing the value of the asset to fall. This operation can happen in a matter of minutes.

Fake Apps

Another way is by creating fake cryptocurrency apps that can be downloaded on Google Play or the Apple App Store.

Although authorities quickly remove these fake apps, thousands of people have fallen for it and lost money.

Investors should be vigilant and verify their authenticity before downloading to avoid falling into the hands of scammers.

Other Modalities

There are other types that involve tricking investors into buying fake cryptocurrencies or promising false returns, using tactics like impersonating celebrities or influential companies, sending witty messages, or threatening users.

Signs to identify possible fraud

According to the security company, there are some signs that can help you avoid falling into some of these traps. Learn to identify them:

• Promises of guaranteed returns: any cryptocurrency offer that promises certain profits is suspect.
• Mediocre or non-existent technical document: there must be a technical document that explains its design and operation. If the document doesn't make sense or doesn't exist, be careful.
• Excessive Marketing: If the offer includes outlandish promises with no backing and excessive marketing to raise money quickly, it's a red flag.
• Anonymous team members: If you can't find the bios of the people behind them and they don't have an active social media presence, be wary.
• Free money - Any investment opportunity that promises you this, whether it be cash or cryptocurrency, is likely bogus and should be avoided.

How to protect yourself?

Unlike traditional bank accounts, cryptocurrency transactions are irreversible. This means that if a thief gains access to your virtual wallet and transfers your cryptocurrencies to another address, it is unlikely that he will be able to recover the money from him. To protect yourself from these scams, take some of the following precautionary measures.

Keeping your wallet's private keys private is crucial, and you should never share your keys with companies that solicit you to participate in investment opportunities.

Another important recommendation is to invest only in what is understood. If you are not sure how a cryptocurrency works, it is best to do your research before making an investment decision.

It's also important to take the time to research opportunities and be wary of social media ads and cold calling. These methods are often used by cryptocurrency scammers to pressure users into quickly investing their money.

Also, it is essential to do your research and read real opinions before investing and be careful with promises of guaranteed returns or instant riches.

Lastly, it is important to note that cryptocurrencies are volatile and speculative. Never invest money you cannot afford to lose and understand the risks before making an investment decision.

Author Bio

Pryanka is a Digital Marketing Executive at BlockchainX Tech Solutions. She designs marketing strategies to use high-quality content to educate and engage audiences. Her specialties include social media marketing specialist and SEO, and she works closely with B2B and B2C businesses, providing digital marketing strategies that gain social media attention and increase your search engine visibility.