{"id":28636,"date":"2021-07-21T17:30:00","date_gmt":"2021-07-21T22:30:00","guid":{"rendered":"https:\/\/www.casino.org\/blog\/?p=28636"},"modified":"2021-07-20T11:42:03","modified_gmt":"2021-07-20T16:42:03","slug":"common-crypto-scams","status":"publish","type":"post","link":"https:\/\/www.casino.org\/blog\/common-crypto-scams\/","title":{"rendered":"R. Paul Wilson On: Protecting Yourself From Crypto Scammers"},"content":{"rendered":"\n

Recently I delved into the issues of investing in crypto and understanding the dangers<\/a> of various coins based on the size of their blockchain. <\/p>\n\n\n\n

As discussed there, the need to control 51\npercent of a currency\u2019s ledger record means that the bigger (and faster) a\nnetwork is, the harder it is to access the necessary nodes and keep up with\nupdates.<\/p>\n\n\n\n

My conclusion (and I\u2019m essentially a noob) was\nthat the coins themselves are difficult to hack, but what about individual\nholdings such as software-based wallets or online accounts?<\/p>\n\n\n\n

That\u2019s where real digital danger lies.<\/p>\n\n\n\n

In this article, I\u2019m going to lay out the most\ncommon threats to your digital pocketbook.<\/p>\n\n\n\n

Nothing New Here<\/h2>\n\n\n\n

For the most part, cryptocurrencies<\/a> are just another item of value and like many other digital items, access to where records are held can be enough to defeat our individual (often inept) security measures. <\/p>\n\n\n\n

Like your online bank account, if someone can\ngain access to that account with your details and password, they might easily steal\nall of your money with a click of a keyboard.<\/p>\n\n\n\n

The methods used to do this are not dissimilar\nto how local crypto wallets (stored on a device) or remote exchange accounts\nmight be compromised.<\/p>\n\n\n\n

To gain access to your funds, thieves can take\nseveral approaches from stealing your ID or password to convincing you to send\nthe funds yourself. <\/p>\n\n\n\n

If you have a healthy interest in all things deceptive<\/a>, these tactics will be quite familiar.<\/p>\n\n\n\n

The fact that most digital currencies are\nunregulated creates a Wild West aspect that attracts online bandits and offers\nthem a degree of impunity compared to other forms of theft.<\/p>\n\n\n\n

As a result, the diversity of thinking from this\nnew generation of fraudsters can create remarkably complex or elegantly simple\nmethods for taking your money.<\/p>\n\n\n\n

\"crypto
Image: Shutterstock<\/em><\/figcaption><\/figure><\/div>\n\n\n\n

How They Find You<\/h2>\n\n\n\n

With any con game<\/a>, knowing what a potential target wants is the foundation upon which most scams are built but scammers also need to target victims with treasure that\u2019s worth stealing.<\/p>\n\n\n\n

Online profiling can create a catalogue of\nviable crypto investors simply by trawling forums, video comments and social\nmedia groups while collecting any available data from these sources. <\/p>\n\n\n\n

With your email, phone number and real name,\nscammers can attack people in several ways so fostering a disposal identity\nthat\u2019s difficult to connect to your own might be a good strategy in terms of\nprotecting your true identity.<\/p>\n\n\n\n

I don\u2019t particularly care for anonymous online\ninteraction since it tends to foster negative discussions, insults, lies and\ngeneral bad behavior but when it comes to not revealing yourself as a target\nfor thieves, an alter-ego might not be such a bad idea when publicly discussing\nfinancial matters.<\/p>\n\n\n\n

I leave that up to you but please, act\nresponsibly.<\/p>\n\n\n\n

An important factor is that there are a lot of\nnew investors vulnerable to many forms of attack and crypto seems to attract a\ncertain type of investor who tends to be overconfident in the face of much more\nsophisticated adversaries. <\/p>\n\n\n\n

Like a brand-new chess player convinced they\ncould hold their own against a grandmaster when in fact, they\u2019re almost certain\nto lose; whereas a more intelligent beginner might have the self-awareness to recognize\nwhen they\u2019re sitting opposite a superior opponent and expect the inevitable.<\/p>\n\n\n\n

This is nothing new and poker players<\/a> everywhere have learned the hard lessons of hubris only to take full advantage when tables are turned later in their playing careers!<\/p>\n\n\n\n

How They Get You<\/h2>\n\n\n\n
\"Bitcoin
Image: Shutterstock<\/em><\/figcaption><\/figure>\n\n\n\n

An exhaustive list or description of methods\nmight fill a book so take these are merely examples of how scams might catch\nyou. You should always be aware that new variations are common.<\/p>\n\n\n\n

You will hopefully recognize all of these tactics from other types of scams but that does little to help if you don\u2019t remain vigilant when trading<\/a> online and accept that you might be outplayed and outgunned if you fall into a well-concealed trap.<\/p>\n\n\n\n

1. Pretenders<\/strong><\/h3>\n\n\n\n

Traditional methods like phishing<\/a>, where an email or online communications trick people into accessing bogus sites and\/or installing (openly or secretly) malware onto their devices remain successful.<\/p>\n\n\n\n

No matter how hard we try, there will always be\na link we shouldn\u2019t have clicked or a page we shouldn\u2019t have opened.<\/p>\n\n\n\n

A key component to the success of phishing is\ntiming and while billions of emails might be sent in the hope that a few will\nfall into a victim\u2019s inbox just after they\u2019ve spoken to the bank or company\nbeing emulated; crypto scams can make excellent use of data trawled from the\nsources previously mentioned and be almost tailored to individual recipients.<\/p>\n\n\n\n

A powerful tactic is to find subscribers to\ncertain websites, channels or individuals and then spoof these sources to make\nit look like you are talking to someone you may already trust. <\/p>\n\n\n\n

Recently, multiple celebrities were hacked and\ntheir online identities used to advertise a giveaway of cryptocurrency where\nany amount of crypto sent to them would be doubled and quickly returned. <\/p>\n\n\n\n

Of course this sounds like a scam, but the fact\nit came from verified sources (apparently) gave it enough credibility and\ninherent trust in these famous accounts trapped lots of people into foolishly\nsending their money.<\/p>\n\n\n\n

2. Infestment Opportunities<\/strong><\/h3>\n\n\n\n

Malware can come from many sources and now that\nthe incentive to hunt and steal digital currency is high, don\u2019t think that\ndodgy emails or texts are the only ways to get past your personal security\nmeasures.<\/p>\n\n\n\n

Genuine software updates from major companies\nhave had viruses incorporated at source and it\u2019s only a matter of time before\none of the big two operating systems has a disastrous event baked into its own\ncode that might trigger before it can be recognized.<\/p>\n\n\n\n

Hardware is also a very real danger and anything\nyou plug into your computer might have something unexpected lurking inside. <\/p>\n\n\n\n

Personally, I\u2019m hyper cautious about all USB\nsticks and hard drives to the point where I would prefer to use one device\npurely for financial matters and protect it from all other unnecessary software\nor hardware.<\/p>\n\n\n\n

I recently heard of a USB flash drive company sending\ntens of thousands of sticks to corporate clients, each with a virus on board\nwaiting to find the right conditions for a digital heist.<\/p>\n\n\n\n

It\u2019s easy to become super-paranoid but a little paranoia is warranted in the face of unwanted parasites infesting seemingly legitimate products and providers.<\/p>\n\n\n\n

3. Online Imposters <\/strong><\/h3>\n\n\n\n

Unsurprisingly, fake websites have become\nincreasingly common as a way to facilitate various types of crypto theft and\nthese sites might run for hours, days or months before recycling into a\ndifferent form with a similar name.<\/p>\n\n\n\n

Fake websites might be a complete copy of a recognized\nlegitimate site but with a tweaked URL to fool those who don\u2019t double check\nsuch things and still click through from emails.<\/p>\n\n\n\n

Social Engineering attacks<\/a> often direct people to these bogus sites and encourage them to create accounts or enter details that might be useful elsewhere. <\/p>\n\n\n\n

This type of attack uses human-to-human\n(apparently) engagement to gain trust or manipulate people into giving\nsensitive information or taking actions that compromise their personal online\nsecurity.<\/p>\n\n\n\n

You can check these sites for yourself with services like Crunchbase<\/a> but if you don\u2019t know what you\u2019re doing or have any reason to doubt, my advice is to stick with well-known exchange sites and always check the URL you\u2019re using.<\/p>\n\n\n\n

Your Best Defense?<\/h2>\n\n\n\n

As Mr. Miyagi says, the best defense is to \u201cno\nbe there\u201d.<\/p>\n\n\n\n

\"\"
Image: Memes Monkey<\/em><\/figcaption><\/figure><\/div>\n\n\n\n

I\u2019d caution anybody about getting too deeply and too openly involved in any financial venture without learning as much as you can about what\u2019s safe and what\u2019s not and to always recognize that the less you know, the more vulnerable you are.<\/p>\n\n\n\n

Make sure your passwords are as strong as\npossible and be equally careful with password recovery methods that should be as\nstrong as the password itself. <\/p>\n\n\n\n

Think of it this way: if you have a 50-digit\npassword with numerals, letters and symbols but your password can be recovered\nby knowing the name of your dog or grandmother\u2019s maiden name, you\u2019re not as\nsafe as you think you are.<\/p>\n\n\n\n

By using two-factor authentication<\/a> on all your accounts, tracking all wallet or exchange activity, deleting any remote access software that might be on your devices and using advance phrase recovery for your accounts, you minimize the chances of being scammed.<\/p>\n\n\n\n

And of course, make sure your anti-virus\nsoftware is up to date on any devices you use for financial purposes.<\/p>\n\n\n\n

Such steps will make you a harder target but if\nhackers smell blood in the water and concentrate their efforts on any one of us,\nit\u2019s only a matter of time before they break through.<\/p>\n\n\n\n

And if you do get hit, stop all activity\nimmediately, reset passwords and report it immediately to your brokerage.<\/p>\n\n\n\n

If at all possible, have a trusted, verifiable\nsource for advice on how to navigate the minefield of cryptocurrencies. <\/p>\n","protected":false},"excerpt":{"rendered":"

Recently I delved into the issues of investing in crypto and understanding the dangers of various coins based on the …<\/p>\n","protected":false},"author":47,"featured_media":28659,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3267],"tags":[],"acf":[],"yoast_head":"\nHow To Protect Yourself From Crypto Scams \u2013 By A Cheating Expert<\/title>\n<meta name=\"description\" content=\"Learn about the most common threats to your digital pocketbook and how to protect yourself from the new wave of scammers.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"R. 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