Table of Content
- Types of Crypto Scams in 2021
- How to Avoid the Scams?
- How can you protect yourself from Crypto Scams in 2021?
There is nothing new about Cryptocurrency, as everyone is aware of what it is? You usually exchange Cryptocurrency with someone online, with your phone or computer, without using an intermediary like a bank. There are many Cryptocurrencies in the market, and some new ones are recently being created. Today, we are here to tell you about Crypto Scams in 2021.
Scammers are continuously finding better approaches to take your cash utilizing Cryptocurrency. One beyond any doubt sign of a scam is anyone who says you have to pay by Cryptocurrency. In truth, anybody who tells you to pay by wire transfer, gift card, or Cryptocurrency could be a scammer. Of course, if you pay, there’s nearly no way to urge that cashback, which is what the scammers are tallying on. If you see a tweet that is asking you to pay by Cryptocurrency, that’s a scam. So, to make you aware of what is going on in today’s digital market, scams are increasing day by day. Go through the complete article to know more about Crypto Scams in 2021.
Types of Crypto Scams in 2021
Targeting Investors to get Bitcoin Cash
Uncontrollable scams are going on in the Cryptocurrency market. It has been observed that consumers have lost about $82 million to crypto scams in the fourth quarter of 2020 and the first quarter of 2021, more than ten times the sum from the same six-month period a year prior, concurring to the Federal Trade Commission. Scammers have targeted small investors. This is a kind of scam widespread now as cryptocurrency prices have soared like never seen before. From October to March, the cost of bitcoin bounced 450% to about $60,000, whereas rival coins such as Ether and Dogecoin surged. Bitcoin has since fallen to around $36,000, still considerably higher than where it traded in the past year.
Phishing attacks are a one of the scams favorite among hackers and scammers. In Phishing Scams, an attacker typically impersonates a service, company, or individual through email or other text communication or by hosting a fake id. There is a trick in phishing scams in which they try to reveal person’s private keys or send bitcoin to an address the scammer owns. Example of Phishing scams are:
One should contact by sending the address, and you should look over the address, and you will notice a misspelling of the URL and the confirmed address. A scammer will always try to make the incoming email seem as accurate as possible, so always check twice. Another tip is to hover over any link to observe where it is leading. Just because bitcoin.org is highlighted with a link does not mean it actually goes to bitcoin.org, for example.
Twitter Giveaway Scams are those in which people act to be traders and ask to invest in mining schemes with very high returns. There are examples of Twitter giveaway scams explained below.
PM Modi Twitter Account Hack: Narendra Modi’s individual Twitter account was hacked, and tweets were posted inquiring for individuals to give Cryptocurrency. Twitter affirmed this, and all the tweets posted as a result of the hack have been deleted. In any case, screenshots are presently being circulated on Twitter, with individuals indeed claiming that these tweets were from PM Modi’s account. However, the tweets were posted from the Twitter account used by PM Modi’s official site with 2.5 million followers. The presently erased tweets from the confirmed account inquired individuals to give to the PM National Relief Fund for COVID 19 and included an address for individuals to provide bitcoin.
Elon Musk Impersonators: For a long time, scammers have postured Musk to fraud social media users out of Cryptocurrency. They use tricky strategies on destinations like Twitter, frequently using the same avatar pictures as Musk’s account and somewhat incorrect spelling his username. Misrepresenting Musk, the scammers will inquire victims to send cash to a particular wallet address to accept a more significant return. In one of the biggest breaches in Twitter history, attackers compromised accounts belonging to Musk, President Barack Obama, President Joe Biden, Bill Gates, and even Apple to promote a bitcoin scam. The attackers received nearly $120,000 from the fraud that forced Twitter to block all verified users from posting new tweets for several hours.
Youtube Live Stream Scams
Steve Wozniak Lost Google’s YouTube Bitcoin Scam Case
Steve Wozniak, the co-founded multinational tech firm Apple Inc., lost a lawsuit against YouTube over recordings that used his picture to advance a false Bitcoin giveaway. Wozniak, in his claim, recorded last year, contended that Youtube should not be protected because it failed to expel the video and “materially contributed” to the scam. In addition, Wozniak claimed that the video-sharing platform profited from the fraud by selling targeted ads, driving traffic to the fraudulent videos after falsely verifying the scammers’ Youtube channels.
Bill Gates Youtube Account Hacked
A hacker has captured tens of YouTube accounts, renamed them to different Microsoft brands, and is right now broadcasting a cryptocurrency. So the hacking of the youtube account has become the central issue of youtube nowadays. Such scams were once widespread on Twitter but have moved to YouTube in later months as Twitter started breaking down on clients posturing as verified accounts. A hacker appears to have taken over 30+ YouTube profiles from where they live, streaming an old Bill Gates conversation on new companies that the previous Microsoft CEO gave to a group of onlookers at Town Worldwide in June 2019, but to asking clients to take an interest in a scammy giveaway.
How to Avoid the Scams?
- Only send Cryptocurrency to trusted people — know the person you are engaging and conducting transactions with.
- Do not be afraid to make telephone calls and send emails to verify the authenticity of the seller. Use telephone numbers from legitimate sources.
- Do not send Cryptocurrency or funds to a third party. All transactions should be completed with the same person you initially engaged with.
- Do not provide copies or images of your ID.
- If the person seems too eager or accommodating to complete the transaction quickly, exercise caution.
- Be mindful of websites or services promising high returns or unrealistic investment opportunities. If it sounds too good to be true, it is probably a scam.
- Look for grammatical errors in communications with the buyer. It may indicate the buyer is not who they say they are.
How can you protect yourself from Crypto Scams in 2021?
- There are many ways you should know about how to protect yourself from Crypto Scams. They are as follows:
- Consumers in their 20s and 30s lost more money to investment scams in general than any other type of fraud—more than half of this age cohort’s losses in Cryptocurrency.
- Consumers ages 20 to 49 were more than five times as likely than older people to report losing money to a crypto investment scam during the six months examined.
- If anybody calls and insists you invest in Cryptocurrency, that 100% a scam as in this digital market, nobody insists you invest money.
- It’s advice that does not trust anyone if they tell you that they know how the value will increase. Investors make money by selling their Cryptocurrency for more than they paid, but there’s no guarantee its value will go up. “
- Guarantees of huge returns and claims that your Cryptocurrency will be multiplied always signal a scam.
- Always check the sending email address.
- Avoid Opening links from an unknown sender.
- Do not share your personal information, passwords, or seed words with anyone.
- Many Crypto users make the biggest mistake by creating a digital copy of their private Crypto accounts.
- Enabling 2-factor authentication when possible such as google authenticator.
- Always use a different password for every crypto platform you use