Renowned author and financial guru Robert Kiyosaki thinks Bitcoin (and crypto writ large) is still a great investment. This is despite his speculation that the price of Bitcoin may drop as low as $9,000! In fact, the next crypto crash may be the best time to buy crypto in the next couple of years.
So when the crash happens and you follow the golden rule of investing (buy low, sell high), you may also want to be alerted to crypto scammers and their scams.
For a brief overview of what to look for, check out this handy guide to common crypto scam tactics.
1. E-Wallet Phishing
Phishing is one of the oldest and most successful internet scamming tactics. The scammer sends an official-looking (but ultimately fake) email and the recipient follows the link to a page requesting they input personal details like bank codes. Crypto phishing scams ask for your crypto wallet key.
The best way to avoid this attack is never to click on links in unverified and unsolicited emails. If you think it is official, first check by contacting your trading platform’s helpline.
2. Online Dating Attacks
Romance can make people forget many of their usual defenses and that hasn’t changed in the internet dating era. Many people still fall madly in love over dating apps and unscrupulous crypto scammers actually take advantage of this.
These cryptocurrency scams involve the scammer setting up a fake profile, catfishing a victim, and then asking for a crypto transfer when they think the relationship has reached that level. They’re quite easy to avoid if you’d never send money to someone you don’t have a deep relationship with. They do make the list, however, because a third of adults have online dating profiles and these scams are much more successful than you’d imagine.
3. Blockchain Games
Some scammers program games which use cryptocurrency as the in-game currency. Victims download the game and pay for the new coins, but when they “buy” things in the game they actually transfer those coins to the scammer’s wallets. When the coins’ prices boom scammers sell the now more valuable coins for a profit.
If you’re into crypto and indie gaming then it’s best to research your game developers before you perform any in-game transactions.
4. Blackmail Scams
Some scammers will target you directly. They’ll send an email claiming that they have explicit material of yours which they threaten to expose if you don’t hand over your crypto key. These types of cryptocurrency scams are illegal and should be reported to a law enforcement agency.
5. Bogus Investment Schemes
Buying new currencies or NFTs from unreliable, untested, and new platforms is the quickest way to lose money. If you buy Shiba inu coin from VirgoCX you know you’re safe because you’re buying a reputable, listed coin from a platform with a good reputation and proper security and regulations. However, if you happen across a brand new coin or platform with a “guaranteed 1,000% return” then you’re almost certainly dealing with scammers.
Lookout for Crypto Scammers
Crypto scammers are our era’s con artists which means some will be obvious while others could be convincing. If you keep your passcodes to yourself, avoid shady transactions, vet your emails, and know when things sound too good to be true then you already know how to protect cryptocurrency in your wallet.
If you liked our article on how to spot a crypto scam, try out some of our other how-to articles in our how-to blog category.