Common Cryptocurrency Scams and How to Avoid Them
Cryptocurrency has become an important part of our global economy, and it’s never been easier to invest in this asset class thanks to online exchanges like Coinbase, Bitfinex, and Kraken. Unfortunately, these platforms – along with most cryptocurrency services – also attract scam artists looking to profit from unwary investors. From ICO scams to mining frauds, cryptocurrency has its fair share of scammers just like any other business or industry sector. Here are some of the most common types of cryptocurrency scams you need to be aware of when trading or investing in this exciting new asset class…
Tech Support Scam
A tech support scam is one of a variety of scams designed to trick you into paying for unnecessary technical support services. In many cases, these services are supposedly necessary in order for you to receive a refund or replacement computer after being scammed. At other times, scammers will falsely claim that your device has a virus which needs removal. The most common way these scams work is by calling you out of nowhere, claiming to be from a legitimate company like Microsoft or Apple, and pressuring you into allowing remote access to your computer so they can fix whatever problems they find. Once they have control over your system, they use scare tactics (like warning messages about viruses) in an attempt to convince you that something on your system is broken – when it’s really just part of their ploy.
Trickbot is a banking Trojan that takes over your computer in order to get you to divulge personal information. It enters your computer through sites or emails containing malware, infecting whatever version of Windows you’re using. Trickbot then contacts its command-and-control server and checks for instructions on which form of financial theft it should carry out next – fraudulent credit card purchases, fake wire transfers, or other forms of digital theft.
Initial coin offerings (ICOs) are an increasingly popular way for startups to raise money. ICOs can be a great way for early investors to reap rewards, but they’re also one of today’s leading investment scams. Before you contribute any money, take some time to research – or even better, reach out directly – before you invest.
Crypto Mining Malware
This malware tricks users into mining cryptocurrencies for hackers by using their own computing power without their knowledge. Hackers hide these malicious programs on websites or in spam emails that can infect your computer with crypto mining malware if you access or download any of these files. Even sharing a WiFi connection could be enough to expose your device to crypto mining malware. To avoid being infected, always make sure that you have up-to-date antivirus software running before downloading anything from unknown sources.
Although phishing scams have been around for a long time, they’ve become far more sophisticated in recent years. These days, even advanced users can fall victim to such ploys. When it comes to online security, there’s nothing better than a healthy dose of skepticism. In today’s fast-paced world, people rarely check a website’s URL or SSL certificate before making any financial transactions.