The blockchain is focused on security. However, several security issues remain, especially from the user’s end. Like any financial product, crypto is riddled with scams and frauds, which leads to losing funds and assets. And you have to protect yourself from malicious actors.
These are some of the most popular scams that lead to the loss of assets and funds.
1. Phishing Scams
Phishing is a method of stealing passwords, credit card numbers, private keys, and sensitive data by employing social engineering attacks. The popular methods of phishing are emails and websites. A phishing message will often ask you to click on a link, leading you to a website that will log your credentials. Ignore any email not prompted by you or that asks you to divulge sensitive information. Sometimes malicious files are sent over the mail, so you shouldn’t download random files, especially from an untrusted sender.
2. Impersonation
Malicious actors often impersonate well-known figures, a company or entity you are in business with. Impersonators will try to get you to divulge sensitive data like login credentials and private keys or ask you to pay for some services. Always ensure you verify the authenticity of any requests; most businesses will not ask you to divulge information over text, mail, or any other form of communication.
3. Financial Transactions Scams
It is not advisable to perform financial transactions on behalf of another party because you could become an accessory to a shady financial transaction such as money laundering. Also, do not give anyone your login details to carry out transactions. There’s a risk of violating Money Laundering or Terrorist Financing regulations if you carry out transactions for other people.
4. Investment Scams
Investment scams often involve a business proposal that promises a very high investment yield or asks you to pay a fee or some form of tax to get high returns. An investment scam will look legit as they often forge ID cards and letterheads and quote official sources, making them look believable.
5. Fake Airdrops
Malicious actors may send fake airdrops to your crypto wallet, compromising your funds once you interact with it. Always verify the source of funds being transferred to you, and don’t interact with suspicious websites promising airdrops.
6. Crypto clipboard malware
A clipboard malware attacks your computer by replacing every copied address with that of the attacker, which means you will lose your funds should you fall victim. Other scams include romance scams and fake refunds.
Tips on Protecting Yourself
Always double-check you are on the right platform.
Keep your private keys secret and never divulge them to anyone.
Set up Multi-Factor Authentication on all your accounts.
Verify all requests and ignore all calls to action that you did not initiate.
