Cryptocurrency Scams: How to Protect Yourself Against Crypto Scams in 2022

How to Protect Yourself Against Crypto Scams in 2022

It’s a raging rave out there, and everyone can’t stop talking about cryptocurrencies. At every turn is a new coin — or nft. And oh! NFTs! Those are like the newest bomb in town taking up all the major sale news today. But with all of these going on comes more risk of falling victim to crypto investment scams.

Scammers are only a stone’s throw away when you’ve got a thriving, new concept in finance! Think of the gold rush back in the 80s! All people need is a promise of massive return on investments, and they’d be ready to pool in all they have — even their retirement plans!

Does this all mean crypto investments are a no-no for you? No! Only you’d have to key into the standard rules of fraud prevention. Read on to learn more about what the biggest crypto scams usually are — and how you can protect yourself.

Here Are the Most Common Crypto Scams of 2022

To teach you to protect yourself against the latest crypto scams, you must train your senses to identify them. Now, here are the most common scams on the rise.

Ponzi Schemes

Cryptocurrency or not, this is one popular strategy that lives rent-free in our world. It’s that time you get persuaded to invest in a non-existent company. Or, as you’d usually see — a get-rich-quick scheme. We often fall for this. After all, who wouldn’t want a more oversized purse within the shortest time possible?

And cryptocurrency only makes it worse as it’s both a new and powerful technology that has everyone in awe. It’s also relatively easy to falsify fake documents.

Crypto is a virtual currency, so creating a fake virtual is easy with today’s technology. In all, it’s the perfect hook for investors looking to multiply their purse content.

Pump and Dump

As the name implies, scammers work on pumping share prices, selling theirs, making a profit, and disappearing! This act leaves the other shareholders with worthless stocks. And how do they raise the prices? Simple!

They publish false information about a small, unknown crypto company. They convince investors to buy shares with this company. Then, the typical rule of demand comes to play. The more demand, the higher the price of the shares.

But all that falls to nothing when the company has no plan to scale up and bring in profits. And when the company does crash, only the ignorant investors get affected. The scammers, by this time, are long gone!

Fake Celebrity Endorsements

Consider waking up to seeing a tweet from Elon Musk telling you to pay into a particular wallet while he gives you double whatever you send. Now, wouldn’t that be quite the enterprise? And all you have to do is send a little chunk of your money to get double? Who wouldn’t want that?!

It gets sad that greed is an enemy to us as it’s something scammers love to exploit. Many in this case might go on to drop all they have with the promise of a double. Only to find out that the tweet was not from Elon Musk. But from some scammer who’s been able to hack Elon’s account successfully — or maybe created a new lookalike.

Well, most times, the scammer usually has gotten away with millions of dollars in cryptocurrency before the truth is out. He leaves his victims to cry.

The point here would be to be careful where the hype and noise lead you. Usually, the hype and noise only lead to a scammer’s trap.

Fake Exchanges

Scams in this form are usually one of urgency. The scammer reaches out to his leads via social media and email, promising them some virtual currency. However, you’d have to drop a certain fee to access your share. You drop that fee, which will be the end of that discussion. You’d have successfully made someone else richer.

Impostor Apps

This new form of crypto scam is on the rise too. Today, many fake websites and apps encourage their visitors to fill in contact and financial detail forms.

With this, the scammers can access your funds and extract all they need from them. Other times, the app or website saves malware on your device and curates passwords from your phone, giving them access to your purse.

Phishing/Impersonation

We somehow pay attention when someone wealthy or powerful interacts with us. Scammers who understand this psychology also do the same. Often, they present themselves as someone powerful or wealthy — in legitimate ways.

Once they know they have your trust, they exploit this. They try to rush you into making certain payments in cryptocurrency. You get no thinking time — and since you trust their legitimacy, you also go on to drop some coins. Only to find out later that they are not who they claim to be.

Here’s How You Protect Yourself Against Crypto Scams in 2022

Now that you’ve learned all the forms of scams that could come your way this year, it’s high time you learned how to avoid them. The primary key to protecting yourself is incredulity.

Stop the rush, give yourself time to think — and don’t be too quick to believe anything you see. Keeping this in mind, let’s see what you can do to protect yourself from cryptocurrency scams.

Beware of Unsolicited Messages

The first rule to protecting yourself remains the same across all types of fraud. Avoid giving personal details to strangers, especially when it’s unsolicited. If you ever get approached out of nowhere and asked to drop your details — run!

Other times, the messages might come from a friend. But always double-check. Hacking accounts is becoming relatively easy these days, and it might be a scammer using your friend’s account to fool you. Reach out to that friend via a different means and confirm if they were the ones who sent the message.

Not All that Glitter is Gold

If you ever see a deal that’s too good to be true, back off from it — for a moment. Take extra time to check it as it’s never true most times. And one characteristic of such scams that appear this way is how it comes in a rush. So, don’t get into panic mode because of a gold mine somewhere. Stay your ground, read more — and only make informed and confirmed decisions.

Security and Protection

Ensure you have two-factor authentication for every of your crypto account. It protects your account better from a scammer.

Be Wary of Up-Front Payments

Anytime you get requested to drop a certain fee before investing, dismiss such an endeavor. It’s usually only to fill up the purse of some cunny scammer.

Invest in Anti-Malware Protection

Ensure you have your devices protected by anti-malware software from a trusted provider. And while you have that, also ensure you stay clear of unofficial websites and app stores.

The world might be losing all reason at the promise of making it huge in cryptocurrency. But you don’t have to lose your cool. Stay calm, retain reason, and be safe from crypto scams.