As with any industry which involves online financial transactions, scamming is rife in the cryptocurrency world. In the past week, it has been reported that over 40,000 cryptocurrency scams were made in 2020. This is largely due to the fact that cryptocurrency is now part of the permanent social conscience, and has become an important institution like online banking or gambling. There is no doubt that cryptocurrency is here to stay, unfortunately, that means so too are cryptocurrency scams. An increase of at least 75% is expected this year, just last week Vancouver police reported that over $2m was stolen through cryptocurrency scams, from various customers, in just one week.
Although fears about the legitimacy of the concept have been proven to be false, cybercriminals have spotted an opportunity to illegally make money by hoodwinking keen first-time investors. However, careful investors can make plenty of money through cryptocurrency, as long as they know what kind of scams are out there, what the signs are for spotting it, and how to avoid becoming a victim.
One of the most common cryptocurrency scams is fake websites, pretending to represent real cryptocurrency pages.The kind of pages they are imitating can range from exchange wallets, official currency ages and wallet comparison sites. The sheer number of these kinds of sites, set up to trick naive investors, cannot be understated. Most web browsers place a small padlock icon next to the address bar to indicate that a site has passed their security checks. So, if this icon isn’t present, the site will most definitely be a fake. For example, if you visit Cryptowisser.com you will see this icon, so therefore you can trust it. Secondly, when attempting to visit any cryptocurrency site, especially popular ones, it’s important to double check the URL. It's always advisable to find out the exact URL from someone already reliably using it as scammers use tricks like replacing letters with numbers (I with 1 for example), which can be difficult to spot when simply clicking on a link.
It will come as no surprise that as well as fake websites, hoax mobile apps are also regularly created and launched on platforms such as Apple’s App Store and Google Play. Unfortunately, probably due to the fact that hundreds of thousands of apps are added to the per day, these platforms security checks often fail to spot them. In January this year, Trezor, one of the world's most popular cryptocurrency wallets, had to warn customers, via twitter, not to download a harmful app claiming to be developed by them. By this point, the app had already been downloaded over 1,000 times with many customers having already entered their details into it. Although both Apple and Google do make huge efforts to remove fraudulent apps from their platforms, the sheer volume of apps created everyday means they can't be trusted to stop the problem before any customers are put in danger. So, it’s important for users to take responsibility for their own online security by making sure to verify apps through official channels.
As celebrity support for cryptocurrency grows, so too does the use of their names and likenesses in scams. A few weeks ago a German cryptocurrency investor lost over $500,000 to scammers after following a link posted by a fake Elon Musk twitter account, claiming to be offering followers the chance to double the bitcoin they upload to the site. This loss of 10 bitcoin has never been recovered and authorities are refusing to help. These kinds of scams are on the rise, reports state that scammers offering giveaways have already stolen over $18m in 2021 alone, after a total of $16m in the whole of 2020. To avoid being scammed in this way, it’s important to verify social media account handles for yourself, even if they feature the “blue ticks” which are supposed to do this for us. Lastly, if an offer seems too good to be tru, it probably is.
Online Threat Alerts Security Tips
Pay the safest way
Credit cards are the safest way to pay for online purchases because you can dispute the charges if you never get the goods or services or if the offer was misrepresented. Federal law limits your liability to $50 if someone makes unauthorized charges to your account, and most credit card issuers will remove them completely if you report the problem promptly.
Guard your personal information
In any transaction you conduct, make sure to check with your state or local consumer protection agency and the Better Business Bureau (BBB) to see if the seller, charity, company, or organization is credible. Be especially wary if the entity is unfamiliar to you. Always call the number found on a website’s contact information to make sure the number legitimately belongs to the entity you are dealing with.
Be careful of the information you share
Never give out your codes, passwords or personal information, unless you are sure of who you're dealing with
Know who you’re dealing with
Crooks pretending to be from companies you do business with may call or send an email, claiming they need to verify your personal information. Don’t provide your credit card or bank account number unless you are actually paying for something and know who you are sending payment to. Your social security number should not be necessary unless you are applying for credit. Be especially suspicious if someone claiming to be from a company with whom you have an account asks for information that the business already has.
Check your accounts
Regularly check your account transactions and report any suspicious or unauthorised transactions.
Don’t believe promises of easy money
If someone claims that you can earn money with little or no work, get a loan or credit card even if you have bad credit, or make money on an investment with little or no risk, it’s probably a scam. Oftentimes, offers that seem too good to be true, actually are too good to be true.
Do not open email from people you don’t know
If you are unsure whether an email you received is legitimate, try contacting the sender directly via other means. Do not click on any links in an email unless you are sure it is safe.
Think before you click
If an email or text message looks suspicious, don’t open any attachments or click on the links.
Verify urgent requests or unsolicited emails, messages or phone calls before you respond
If you receive a message or a phone call asking for immediate action and don't know the sender, it could be a phishing message.
Be careful with links and new website addresses
Malicious website addresses may appear almost identical to legitimate sites. Scammers often use a slight variation in spelling or logo to lure you. Malicious links can also come from friends whose email has unknowingly been compromised, so be careful.
Secure your personal information
Before providing any personal information, such as your date of birth, Social Security number, account numbers, and passwords, be sure the website is secure.
Stay informed on the latest cyber threats
Keep yourself up to date on current scams by visiting this website daily.
Use Strong Passwords
Strong passwords are critical to online security.
Keep your software up to date and maintain preventative software programs
Keep all of your software applications up to date on your computers and mobile devices. Install software that provides antivirus, firewall, and email filter services.
Update the operating systems on your electronic devices
Make sure your operating systems (OSs) and applications are up to date on all of your electronic devices. Older and unpatched versions of OSs and software are the target of many hacks. Read the CISA security tip on Understanding Patches and Software Updates for more information.
What if You Got Scammed?
Stop Contact With The Scammer
Hang up the phone. Do not reply to emails, messages, or letters that the scammer sends. Do not make any more payments to the scammer. Beware of additional scammers who may contact you claiming they can help you get your lost money back.
Secure Your Finances
- Report potentially compromised bank account, credit or debit card information to your financial institution(s) immediately. They may be able to cancel or reverse fraudulent transactions.
- Notify the three major credit bureaus. They can add a fraud alert to warn potential credit grantors that you may be a victim of identity theft. You may also want to consider placing a free security freeze on your credit report. Doing so prevents lenders and others from accessing your credit report entirely, which will prevent them from extending credit:
- Equifax
- Experian
- TransUnion
Check Your Computer
If your computer was accessed or otherwise affected by a scam, check to make sure that your anti-virus is up-to-date and running and that your system is free of malware and keylogging software. You may also need to seek the help of a computer repair company. Consider utilizing the Better Business Bureau’s website to find a reputable company.
Change Your Account Passwords
Update your bank, credit card, social media, and email account passwords to try to limit further unauthorized access. Make sure to choose strong passwords when changing account passwords.
Report The Scam
Reporting helps protect others. While agencies can’t always track down perpetrators of crimes against scammers, they can utilize the information gathered to record patterns of abuse which may lead to action being taken against a company or industry.
Report your issue to the following agencies based on the nature of the scam:
- Local Law Enforcement: Consumers are encouraged to report scams to their local police department or sheriff’s office, especially if you lost money or property or had your identity compromised.
- Federal Trade Commission: Contact the Federal Trade Commission (FTC) at 1-877-FTC-HELP (1-877-382-4357) or use the Online Complaint Assistant to report various types of fraud, including counterfeit checks, lottery or sweepstakes scams, and more.
- Identitytheft.gov: If someone is using your personal information, like your Social Security, credit card, or bank account number, to open new accounts, make purchases, or get a tax refund, report it at www.identitytheft.gov. This federal government site will also help you create your Identity Theft Report and a personal recovery plan based on your situation. Questions can be directed to 877-ID THEFT.
How To Recognize a Phishing Scam
Scammers use email or text messages to try to steal your passwords, account numbers, or Social Security numbers. If they get that information, they could get access to your email, bank, or other accounts. Or they could sell your information to other scammers. Scammers launch thousands of phishing attacks like these every day — and they’re often successful.
Scammers often update their tactics to keep up with the latest news or trends, but here are some common tactics used in phishing emails or text messages:
Phishing emails and text messages often tell a story to trick you into clicking on a link or opening an attachment. You might get an unexpected email or text message that looks like it’s from a company you know or trust, like a bank or a credit card or utility company. Or maybe it’s from an online payment website or app. The message could be from a scammer, who might
- say they’ve noticed some suspicious activity or log-in attempts — they haven’t
- claim there’s a problem with your account or your payment information — there isn’t
- say you need to confirm some personal or financial information — you don’t
- include an invoice you don’t recognize — it’s fake
- want you to click on a link to make a payment — but the link has malware
- say you’re eligible to register for a government refund — it’s a scam
- offer a coupon for free stuff — it’s not real
About Online Threat Alerts (OTA)
Online Threat Alerts or OTA is an anti-cybercrime community that started in 2012. OTA alerts the public to cyber crimes and other web threats.
By alerting the public, we have prevented a lot of online users from getting scammed or becoming victims of cybercrimes.
With the ever-increasing number of people going online, it important to have a community like OTA that continuously alerts or protects those same people from cyber-criminals, scammers and hackers, who are every day finding new ways of carrying out their malicious activities.
Online users can help by reporting suspicious or malicious messages or websites to OTA. And, if they want to determine if a message or website is a threat or scam, they can use OTA's search engine to search for the website or parts of the message for information.
Help maintain Online Threat Alerts (OTA).