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- Cryptocurrency scams are common
- New investors with a lack of knowledge are the primary victims
- Double-check before downloading any app
As the cryptocurrency mechanism becomes wider and wider, so are the frauds associated with them. Like any other financial transaction, Cryptocurrency involves risks, and they are not confined only to market volatility. Scams are everywhere, and cryptocurrency exchanges are not immune to them. techtimes.com reports that security researchers have unearthed more than 150 fraudulent cryptocurrency apps, fake trading heads, and banking, which have duped hapless investors of their hard-earned money.
Fake Crypto Apps
Sophos reports that the deceptive iOS and Android apps are all using a shared server and hints that a highly organized cybercriminal gang executes this swindle. A fake customer support team, a typical design of the application, and a mode of communication hint that a well-oiled team is into this fraudulent business.
Modus Operandi
The most common victims of this scam are the greenhorns making their first venture into the cryptocurrency market. According to TechRadar, the fresh investors are lured into installing fake apps and even forming relationships with t hapless victims over dating services.
In one example, the scam operators created a fake version of the App Store download page to trick people into thinking that the application originated from a trusted source. When the app is downloaded, it resembles just like a popular financial service. The app is only a front that leads the victim to a fake landing page where users are encouraged to give out their financial credentials or start a cryptocurrency transaction. The most common guise is topping up the account balance.
How to protect yourself
kaspersky.com recommends that when you scrutinize any cryptocurrency company and startups, confirm that they are blockchain-powered and track detailed transaction data. Also, check if they have a solid business strategy that solves real problems. If any of these factors are missing, be doubly cautious before making any dealings. There is a load of fake websites which look much akin to an original and valid startup company. Check for the small lock icon indicating security near the URL bar and “HTTPS” in the site address.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
