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Watch out! 3 Mode of Scams on Cryptocurrency This Is Often Used by Scammers

Cryptocurrency scams and hacking have developed into one of the biggest dangers in crypto trade in recent years.

Fraudsters were attracted to cryptocurrency from the start, but their actions increased in number and sophistication exponentially after the crypto hype in 2017. As a result, millions of millions of dollars in crypto were reportedly stolen in recent years.

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Initially, scammers mostly targeted people through phishing attacks via email. However, their method quickly developed, and soon, they jumped on the ICO bandwagon. The situation was so bad that crypto investors had to check, check, and check three times every single investment, and even then they could not ensure that they were not cheated.

Watch out! 3 Mode of Scams on Cryptocurrency This Is Often Used by Scammers

Fortunately, the ICO trend has ended, and not many people want to invest in ICO today. However, many frauds still remain fresh in the memory of investors. With that in mind, here are some of the biggest and most tainted examples of the crypto industry that have been reported in recent years.

1. Phishing scams

As mentioned, scammers initially start tricking people through phishing attacks. The method they use is relatively typical for this type of attack, which is on the web long before the cryptocurrency appears.

The process is simple - hackers will get the email address of a crypto investor, and try to trick them into providing sensitive information. A known scamming effort is when scammers create fake online pages that look exactly like legitimate websites, such as those belonging to the crypto exchange.

What a scammer needs to do at this time is to tell the victim that something is wrong with their account and that they need to react as soon as possible. Of course, they will also provide links to fake pages, where victims are expected to click and try to enter their account. At this point, scammers have obtained victim login credentials, which they can use to access their funds. The same danger exists when it comes to hot wallets, which is why it is always recommended that traders and investors pay close attention to the links they click.

2. Fake project

Fake crypto projects are almost the norm in the crypto world at some point. Once crypto prices start to rise, investors begin to buy more coins and invest more money. Scammers quickly realized that some of them would invest in almost anything without too much research, for fear of losing big opportunities. Therefore, many fake coins reported as Ponzi schemes began to appear on the market.

One of the biggest so far is Bitconnect, which has its own coin, its own platform, and that seems real despite the fact that Bitconnect promises amazing returns to everyone who invests in it. This project seeks to attract as many users as possible through a loan program, where users should send their BCC coins to others to get them interested.

3. Fraudsters use celebrities to cheat investors

When looking for better ways to attract investors quickly, scammers quickly realize how many potential celebrities are promoting their projects. Celebrities have millions of followers throughout the world, most of whom are unfamiliar with cryptocurrency and the dangers that lurk in the industry.

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Because of this, they are easy targets, and scammers soon partner with many celebrities to attract new investors to crypto, and their fake projects in particular. Cases of famous celebrities who partner with fake projects include DJ Khaled and Floyd Mayweather. Of course, this does not mean that all crypto projects that partner with celebrities are fraudulent. On the contrary, it only means that investors need to remain cautious when researching projects, no matter who supports them.

Obviously, caution when investing in crypto projects is very important to secure your funds and avoid fraud. Each project requires a large amount of research, as well as the team that runs it, because scammers often post credentials made, and use stolen names and images.

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