With all good things, there is always something bad tagging along. With the increase in Bitcoin value and investors rushing to join the cryptocurrency market it’s expected that criminal activities would also begin to increase. One of the new criminal threats traders and investors are worried about is the huge number of scams out there.
The top method criminals are using to steal your money is phishing. Phishing is when a malicious website is disguised as the legitimate link of well-known services. Through this, a user would enter the malicious website thinking he is on the true website stated in the links description.
An example of phishing would be the following. You receive a confirmation email from your cryptocurrency wallet informing you that you need to resync your wallet account with a new network to prevent hacking, however, once you do this you give away your account details and allow access into your wallet for scammers. What you can do is double check the links before clicking, phishing links are usually misspelled or have unfamiliar characters in.
However, this can still be quite difficult to spot even for actual programmers. Most of the time people who have been scammed in similar ways have ended up taking legal action against the wallet they were using at that time, but the wallet provider had no idea that the client had been scammed.
So how do the scammers know who is involved in cryptocurrency trade and how do they even get your email address? These scammers use email databases to find targets to whom they can send malicious messages to. You might receive a malicious email and think that they are after your hard earned investment, however mostly the scammers spam message everyone in their database so a number of people receive the malicious emails, only a number of them actually open it and get scammed.
Recently scammers have been using social media as well to lure in people. Twitter is one of the most popular social sites used. The scammers will send you a link with a picture of something entertainment related, and distracted by the image you miss to notice the URL address and end up on a malicious website.
Checking links for typing errors might help, but there is better solutions to avoid being scammed. Before investing or even opening up a cryptocurrency wallet, check for proof of endorsements and involvement from reputable figures to determine if the company or website is controlled up by a legitimate team.
As you know now, most scams and phishing is linked to a person’s wallet, so it’s important that you do a background check on the wallet company that you’re planning on using. Make sure they are respected in the crypto-community and that pro investors would advise them. The best wallets for investors to use are the wallets that don’t even have access to your funds at all. Two of the legitimate wallets in the market is MyEtherWallet and Electrum.
A great way to make sure your transactions between your wallet and other accounts are even more secured is to also check the token wallet address at Etherscan. If the address is detected as phishing or scam related you’ll be notified immediately. With scammers developing new phishing ways on a daily basis, users and investors just need to approach cryptocurrency with extra caution until the industry becomes more regulated.