How to Recognize a Cryptocurrency Scam
No matter what type of scams, online or offline, they all share the same features as below:
- Scammers promise you high returns with low investment.
- Scammers make big claims without details.
- Scammers promise quick returns.
- Scammers always promise you high and consistent returns.
All in all, all scams sound too good to be true.
Here is a golden tip to recognize a cryptocurrency scam:
When you CAN pay with cryptocurrency, that may be a scam.
When you’re REQUIRED to pay with cryptocurrency, that is surely a scam.
Some signs indicating cryptocurrency scam:
- Promise you to earn lots of money in a short time through cryptocurrency investment
- Tell you to pay with cryptocurrency to recruit others in a program and promise you a high return.
- The so-called “investment manager” promises to grow your money and ask for your cryptocurrency account information.
How to Avoid Cryptocurrency Scams
Use the Browser with Caution
Some cryptocurrency scammers attract victims through a fake website established by them. To avoid fake websites, make sure the link you fill in the browser comes from official channels, or you can clearly see a lock icon before the URL, or it starts with “HTTPS”.
Use the Mobile App with Caution
Similar to fake websites, scammers also take advantage of fake mobile apps to catfish victims who expect to make money through cryptocurrency investment. As you get ready to invest in a cryptocurrency app, do download the app from the official website download page or get redirected to the App store link through the given link.
Use Social Media and Email with Caution
If you receive a link inviting you to invest in cryptocurrency from a friend of yours on Twitter, do think twice before clicking. It’s a secure idea to confirm with your friend about that. If the message is from a celebrity, search about that on Google to see whether others received such a link or not. That also applies to email links.
Use a VPN
A VPN is usually used to unblock online restrictions while it is capable of protecting against online scams based on the encrypted tunnel. A VPN also stops Internet Service Provider from throttling bandwidth by hiding your real IP address.
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How to Report a Cryptocurrency Scam
If you have unfortunately suffered from or hold sufficient doubt about a cryptocurrency scam, you should immediately report it.
Based on the FTC, you can do the followings to report or stop a cryptocurrency scam:
- Report it on FTC online report website
- Report it on CFTC online complaint site
- Report it on SEC online report site
- Report it to the cryptocurrency service provider you’re using