BEWARE & BE AWARE!
The greed for instant riches can often blind you to the obvious. As with any money-making opportunity, scams are sure to follow, simply because there are gullible people who will believe just about anything that dangles dollars in front of their eyes. Cryptocurrency too has been hit by scams, especially those involving the fakes.
Many have seen their investments go up in smoke for taking a punt on coins that don’t exist or trusting phoney wallets. Beginners are the worst hit due to lack of experience. With cryptos rising in popularity, dodgy deals will, too, so how do you tell the imposters from the real deal? Here are three common imposter scams and quick tips to identify them:
With start-ups and launches come new initial coin offerings, or ICOs. Unfortunately, many have turned out to be incredible con offerings. How do you tell real from fake?
- Do a search on the individuals listed on the company offering ICOs. If you find nothing, it means you could lose everything. If they are vague, it’s probably something fishy.
- Take some time to read their whitepaper and check it online to see if it’s authentic. If there are traces of duplication or it lacks key specifics of their offering, best stay away.
- If you see promises of ridiculous gains in a short time, you are likely looking at someone planning a holiday to the Caribbean at the expense of your investments.
HERE TODAY, GONE TOMORROW
They say imitation is a form of flattery, but in the crypto world, not so much. Many investors were lured by fake websites copying reputable exchanges, and eventually disappearing. So, how do you see through this con?
- Outrageous promotion ads or cheap coins that make you feel like an emperor but could leave you with no clothes.
- Claims of special offers or perks for large scale investments to give you the impression that you’re about to be as rich as Richie Rich, is a definite red flag.
- Devious representation of exchanges using fake websites or apps. The smart thing to do is to research and stick to reputable exchanges.
These online wallets masterfully pretend to be legitimate, but when you make a transaction, you end up sending your cryptos into the wallets of crooks instead. Here are some tips that could stop you from making lining the pockets of scammers:
- Stay away from ridiculously free crypto offerings to stash your coins with them. When something sounds too good to be true, it probably is.
- Don’t be enticed by sweet deals offered for successful referrals. Your referrals are about to get played as well.
- Do a search on suspicious wallets on popular cryptocurrency social media platforms. You are almost certain to find stories of people falling prey. If you find nothing, that’s not good either.