Cryptocurrencies : how to avoid scams

Cryptocurrencies : Foiling the Traps

First of all, as such, the block-chain system on which cryptocurrencies rely is reliable. Thus, unless reckless, no one gets «emptied» his bitcoin portfolio any more than his bank account or his stock market portfolio. On the other hand, as often “small investors” in cryptocurrencies are not sophisticated investors, they risk being trapped by fraudulent maneuvers.

The methods used are the same as those used for Internet scams in general.

Phishing and fake wallets

In the world of cryptocurrencies as elsewhere on the Net, phishing is the basic weapon of crooks. Basic scam but still working, phishing assumes that on the millions of e-mails sent some will give rise to the expected action. It’s about having you click on a link to a fake wallet to retrieve your username and password. From there the crooks will just have to go on your wallet and transfer your cryptocurrencies to their own wallet.

Mye-ther-Wal-let users were victims of this scam attempt. The users had received an email from myetherwallet.com inviting them to retrieve their personal keys to clear their Ethe-reum account.
Users thought to click on the link provided on the site. Except that a letter had been replaced in the address. The site looked exactly like the official site. The scammers had only to use the confidential codes they collected to transfer all the funds into the victims’ pockets.
E-mails are the most used means in phishing attempts but all forms of messaging are likely to be used. Slack users received similar messages.

To avoid being a victim of this type of scam, we must never forget the basic rule of caution. Never click on the links that are sent to you, either by e-mail or to the Privacy Officer. Put the addresses of your different platforms in your favorites and always go through there to get there. This rule of caution also applies to your bank accounts, stock portfolios, etc.

The fake ICOs

Icos are a way for a company to raise funds without opening their capital or going through a bank by “pre-sales” their product or service. Kind of like crowd-founding but cryptocurrency style.
Icos are fashionable and still today absolutely uncontrolled. They are therefore a source of potential scams. If you want to subscribe to an ICOS you have to follow some basic rules of caution. Indeed, many are the crooks who are now trying to promote this mode by creating “fake” Icos.

How do we detect them ?

These can be difficult to determine. The initiators create websites to present their project, give it an appearance of legitimacy and dangle important expectations of gain. Here are a few things to watch carefully :

– The star-up is supported by recognized Business Angels. If the site advertises, check the information.

– Are the founders identified on the site. If not, it is probably a scam. If they are identified, do not hesitate to check their professional career on Linkedin.

– Do the documents provide objective and current information to help you understand the project’s supporters and supporters. Is the “Whi-te-Pa-per” that summarizes the project clear ?

Before subscribing to an ICO you must check the information :

– on the teams;
– on the reality of the product/service under development

Fictitious trading platforms

Many sites are seeking to gain access to exchange opportunities for the sole purpose of embezzlement.
Easy-to-crack scam for knowledgeable users who have had cryp-to-mon-naies for some time, but to whom a beginner can easily fall for lack of knowledge of trusted platforms.
The Coinmarketcap.com site lists reliable trading opportunities. It also offers a list based on the cryptocurrency you want to exchange.
Also choose a platform with a high volume of exchange. You will be able to buy and sell more easily and on the best terms.

Malware to modify addresses

Some micro-computer programs, embedded in apps or externalities, are used to try to divert your shipments. When the user of an inferred computer copies the address of a wallet to which it wants to send Bit-coins, this evil ware modifies it to match that of the crook’s wallet. The same principle applies to the pharming which records a Trojan scan on the target computer. It will change the competition between a site’s domain name and its IP verification. As with phi-shing, hackers will re-collect data from users’ pockets.
Here again the basic precaution is to scan your computer regularly with an anti virus.

As always on the Internet, caution should be exercised when purchasing cryptocurrencies, but this is common sense caution. As with all your other sensitive uses of the Internet. Three basic rules will protect you from 99% of scams: Check all the information provided, never click a link in an email, have an updated antivirus.

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