Cryptocurrency Scams to Watch Out For

People should watch out for these four cryptocurrency scams.

 

Fake websites

 

Investors buy bitcoin by using a cryptocurrency exchange. There are scammers out there who try to replicate these websites as much as possible. They create imposter websites with the same colors and fonts. The website address may just be one letter off from the original. Scammers collect login information when an unsuspecting user enters his username and password. The scammers can now access the investor’s real account and withdraw funds. The whole process can be instantaneous. Scammers can bypass two-factor authentication by creating a prompt on the imposter website. The prompt will ask the victim to enter the passcode sent to his phone from the real cryptocurrency exchange. Therefore, investors should carefully check every letter of a website address when they want to use a cryptocurrency exchange.

 

Emails

 

In addition, scammers try to steal people’s cryptocurrency by sending malicious emails. The emails may have an attachment. When a user clicks on the link, a virus will begin to download on his computer. The virus may freeze the user’s computer and demand payment in bitcoin. The virus may also keep track of every letter the victim enters on his keyboard. This is how scammers can eventually learn people’s login information for every website.

 

Fake mobile apps

 

Scammers also try to target people on their mobile phones. They create apps that look and feel like the apps of legitimate companies. The apps may have the same logo and user interface. Scammers collect passwords when people try to log in using their real information.

 

Hype

 

Anyone can create a cryptocurrency. There are numerous tutorials online, so people can simply pick one tutorial and follow the instructions. Naturally, some cryptocurrencies have greedy founders. They may own a significant portion of the cryptocurrency’s total volume. Scammers create hype around their coins by spamming message boards all over the internet. They will pretend to be someone else. The price will go up when other people buy the cryptocurrency. The founder will then cash out by selling his stake. As a result, the price will plummet. Average investors will get hurt. People can avoid this scenario by only investing in the most popular cryptocurrencies.

 

Overall, investors must be careful when buying cryptocurrency.

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