What are the most common crypto scams and how to #BeKlever about them?
Be aware and don't ever fall for the "easy money" fallacy with these Klever tips
As much as people want to make tremendous gains as a return on their investments, they most times allow their emotions to take precedence over the fact of the financial implications for investing. This has caused heartaches to a lot of people as they have ended up being lured into scam projects consequently and their finances stolen from them.
When you're looking into cryptocurrency businesses and startups, it is recommended that you confirm that they're blockchain-powered, which means they track detailed transaction data and check that they have solid business plans that solve real problems. There should be real people behind the company. If the startup you're investigating lacks some of these characteristics, think through your decision even more carefully before taking a step towards investing in such a project.
These are some of the key pointers for common crypto scams perpetrated by scammers.
Imposter websites and social media platforms
You may be following a solid tip from someone with a lot of expertise but still become a victim by accidentally visiting a fake website. There's a surprising number of websites that have been set up to resemble original, valid startups and mega-companies. If there isn't a small lock icon indicating security near the URL bar and no "https" in the site address, think twice.
Even if the website looks identical to the one you think you're visiting, you may find yourself directed to another platform for payment. For example, you click on a link that looks like a legitimate site, but attackers have created a fake URL with a zero in it instead of a letter ‘o’. That platform, of course, isn't taking you to the cryptocurrency investment that you've already researched. To avoid this, carefully type the exact URL into your browser. Double-check it, too before you take the step of investing in such a platform.
Fake offers and “easy money“
Investment or business opportunity scams often begin with an unsolicited offer, typically to become a cryptocurrency investor, that lures you to a fraudulent website to learn more about the opportunity. Once you’re on the site, you’re encouraged to begin investing and make money quickly. The website might even have celebrity endorsements or testimonials that are faked.
But once you complete your transaction, the offer never comes to fruition and you don’t see your money again. You might equate these types of cryptocurrency scams to multi-level marketing schemes or Ponzi schemes.
Social media Scams
Social media cryptocurrency scams are just what they sound like: Cryptocurrency scams that occur over social media. Oftentimes this is via a false social media post or advertisement requesting payment in cryptocurrency. You might even see other users responding to the post or leaving reviews. In reality, these could be bots. The post or message might even be from a friend whose account has been hacked.
Alternatively, social media influencers might tout a new and potentially fake cryptocurrency and encourage users to sign up or send them payments that they might multiply. This can sometimes result in the influencers merely pocketing the payments. These are considered influencer cryptocurrency scams. Bottom line: Recognize that cryptocurrency isn’t yet a widely used payment method and any ardent requests to only pay with it are likely a scam.
Somewhat of a cross between impersonation and social media cryptocurrency scams, giveaway scams are when victims are lured to an opportunity to send money to someone promising they’ll multiply the payment.
For example, this could occur from a fake celebrity social media account posting that if followers send them a certain amount of cryptocurrency, they will send back twice the amount. In fact, followers will be sending money directly to scammers, never to see their investment again.
The Klever support team and staff have made it a point of duty to continue with educational content to dissuade users from falling victims of these common scams going on in the crypto space. We want to bring more awareness to old and prospective newbies coming into the crypto space and to prevent them from falling into the hands of criminals. To be smart and intelligent is good but it is better to be Klever to avoid financial losses.
It is indeed a Klever thing to do.
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