How to protect you from online fraud and cheat

Understanding the world of cryptocurrencies can be a challenge, especially when it comes to potential dangers, such as deception. Find out below what Crypto Spam means, how to identify these online fraud and how to defend you.

What does cryptographic scam means

The term encryption scam refers to a fraud or a scam in the cryptocurrency field. «Scam» means fraud in English, therefore the name of these illegal methods, through which IT criminals take on the funds stored in the form of virtual currencies. Cryptocurrencies, such as Bitcoin, Ethereum, have become popular in recent years and with greater interest in these digital activities, various deception patterns have also appeared.

What are the main types of cryptographic scam

There are different types of cryptocurrency scams and evolve with technology and changes in the cryptocurrency market. Here are some of the main types of cryptographic tricks:

• Scamme ICO (offers of initial coins): Some ICOs are fraudulent and promise to investors who will make significant profits following an investment in a new virtual currency. In reality, after raising funds, the organizers disappear or do not meet their promises;
• Phishing: The attackers use phishing methods to obtain confidential information, such as password or private keys to cryptocurrency wallets, in particular bitcoin, through websites or with the help of false messages;
• Pump and landfill schemes: Trading groups organize a concerted effort to increase the price of cryptocurrency through an excessive promotion and therefore sell rapidly, generating losses to those who have purchased at high prices;
• Fake wallets și exchanges: The fictitious wallets or scholarships are created to attract investors, but in reality they are designed to steal the stored cryptocurrencies or to obtain personal information;
• Cryptojacking: The attacks infect computers or user devices and use their resources to have cryptocurrency, without having the approval of the owners;
• ICO FALSI: Web sites and false promotional materials are launched for ICO, attracting investors with promises of quick profits, but without the real intention of providing the promised product or service;
• Crypto Trading Robot FRODE: Automatic trading software that can create significant profits are promoted. Many of them are the scams that cause financial losses;
• False Airbrops: Legitimate airdrops are free cryptocurrency distributions to existing owners. Scams attract people with false airidrops, asking them to send cryptocurrencies or personal information to receive «free» virtual currencies.

How a cryptographic scam is identified

First of all, any promise of guaranteed profits should make you think. In the field of investments, there are no guarantees. If someone promises safe profits, it is probably a sign that something is wrong. Other alarm signals may include the pressure to invest rapidly, the lack of clear information on the company or the lack of a legal registration.

Another important stadium to identify a possible cryptographic scam is the detailed analysis of the platform on which the transaction is carried out. Opt for digital banks that offer reliable financial services. There are many things to consider, but some main aspects can be easily observed. For example, a website that is not sure, which has many grammatical errors or that does not provide contact information can be a sign of deception.

It is also important to check the transactions and the address of the wallet, before investing in cryptocurrencies. Cryptocurrency scams can involve false wallets or unauthorized transactions. Therefore, make sure that the wallet address is valid and that the transactions have been authorized, according to the standard procedures.

How to protect cryptocurrencies

Safe conservation of cryptocurrencies is one of the main concerns for any digital currency holder. We recommend using a safe digital portfolio. Hardware wallets are considered the safest because they store cryptocurrencies offline in a physical device, protecting them from cyber attacks.

In addition, it is essential to update the digital wallet software and the operating system of the device used for transactions with virtual currencies. Software updates include security patches that prevent the vulnerability operation by hackers. The protection of personal data is another necessary security measure when trading cryptocurrencies. Never communicate sensitive information: address of the digital portfolio, private keys and other information that could be used to access your funds fraudulently.

Another important security measure is the use of two -step authentication, which requires a second code, in addition to the usual password, to access the digital wallet. This code is generally generated by a mobile application and changes each time it authentic. This makes it more difficult to access your portfolio by unauthorized people.

What to do if you fell victim to a cryptocurrency scam

If you fell victim to a encryption scam, it is important to act quickly and take some measures to minimize the damage. Local authorities and financial institutions that regulate online transactions immediately announces. Specialists in these organizations can provide assistance and have legal means to investigate crime. If the deception took place in an exchange house or on a trading platform, contact their respective companies immediately and inform them about the situation. Some service providers may have safety measures and procedures to help the victims of deception.

If you have communicated information on bank accounts or credit cards in the context of deception, contact the bank or the financial institution immediately to report the accident and request further security measures. If you have provided passwords or private keys, change them immediately. Make sure that all passwords on the accounts associated with cryptocurrencies are updated and that strong passwords are used.

If the deception took place in a cryptocurrency community (Bitcoin, Ethereum, Binance, Cardano, Litecoin etc.), inform other members, to prevent similar situations. Depending on the severity of the situation, it is possible to consult a lawyer specialized in cryptocurrency and financial deception, to receive legal advice and explore the options to recover the losses.

Note that, in the world of cryptocurrencies, deception prevention is more effective than trying to recover the damage. Constantly informed about the news on the field and access the best security methods of virtual currencies.