The recent bullish run in the crypto industry has attracted some bad actors whose motive primarily is to rob investors, crypto traders, and larger entities of their crypto-assets.
Just yesterday, India TV News reported that cyber-criminals targeted high-income individuals across India. Victims received messages through their social media groups asking them to sell and buy Bitcoin via a mobile app.
Manan Shah, Founder and CEO of Avalance Global Solutions, told IANS that the rich are not immune to these growing menace. He said:
“I have seen so many wealthy Indians falling into the trap of such fake cryptocurrency wallets in the recent past. One gentleman just came to me who lost $50,000 (over Rs 37 lakh) while dealing with one such fake platform.”
Recall that about a month ago, Nairametrics reported that crypto scammers gained $24 million worth of BTC in H1 2020.
As the COVID-19 pandemic has kept a lot of individuals more active online, scammers are pulling various types of scams such as fake ICOs, BTC recovery, fake exchanges, giveaways, video scams, fake tumblers, Ponzi schemes, malware, and many more.
Nairametrics proffers some vital solutions on how best to protect your crypto assets in the midst of all the scams. They include:
Always make sure you know the individual you are dealing with. If an individual is offering you an investment opportunity, check if they have a proper website and a Linkedin account. Read the white paper, and Google the project to see what others are saying about it.
If an individual is asking you for cryptos or your money, they are probably trying to defraud you. But if you are not sure, try to verify their claims and ask for proof of their identity. If you are still not sure if you are dealing with a scammer or not, you can send an e-mail to a relevant regulatory authority.
Always be sensitive. If it sounds or feels too good to be true, it’s most likely a scam; even when it sounds reasonable, it could be a scam. If someone claims to have a recording or something else belonging to you, ask for proof.
Do proper background checks
Before sending your cash to any crypto exchange or online wallet, make sure you are using the correct website. If an entity or individual tells you they will make you rich, ask them for evidence. Scammers don’t like to waste time, so they will probably move on to the next victim once they notice you are not easily deceived.
Never release your private keys
Never give out your private keys to anyone, including your family members, and don’t keep your private keys where others might find them. Write down your keys and put them somewhere safe.
If you use a crypto exchange, use as many of their security measures as possible (like an authenticator, phone verification, or others) and make sure your passwords are complex. These measures will not make it impossible to be hacked or scammed, but they will make the scammers have a very hard time defrauding you.
Using cold wallets or a proprietary smartphone is recommended. These are specifically designed tools to keep your bitcoin from falling into the hands of hackers on the internet.