⚠️How to Not Get Scammed in Crypto
Wherever you find money, you will find scams. As the desperation for profit grows, so does the reach of where these scams can be found. As with the penny stock scams of the 1980’s, unregulated spaces are a breeding ground for fraud, hoaxes, and deception. The target victims of these scams are often the newcomers to the space, which is why we need to offer support in protecting these people, enabling them to invest safely and confidently.
Cryptocurrency has exploded in popularity in the last few years, and with it comes risk. Risk for everyone. Scams don’t just affect the victims; they also affect projects as their holders are often the victims. Everybody loses, and so with education and the sharing of best practices and safeguarding procedures we can secure our holders investments, not only with our project, but all their investments.
Now, it is all the more rampant as online trading including stock exchanges and cryptocurrency gained popularity in recent times. According to the USA's Federal Trade Commission (FTC) reported cryptocurrency losses due to cases of fraud was 680 million USD in 2022, a fivefold increase from the year before at 130 million USD in 2021. Many more cases go unreported. About 7% of crypto scams took place on Telegram which the platform Eagle AI uses to give updates to our community. What are some common scams and how can we avoid falling victim to them?
Phishing Scams
As the name suggests, scammers will sometimes create a fake group chat, in many cases using the same logo to deceive their victims. They will then proceed to send malicious links inside the group chat which will bring the user to counterfeit websites where the scammers will obtain the login data for the user’s wallet and be able to withdraw large amounts of money from their accounts. This is especially relevant to Eagle AI since we use a platform like Telegram where it is easy to invite people to join a chat. Take note that any of the mods will NEVER directly message you. Someone who does so is most likely a scammer trying to pose as a moderator and we ask that you report them to us. Furthermore, if you are added to a group chat by someone you do not know, leave immediately to prevent leakage of your personal data.
Investment Scams
Investment scams are a form of scam where the scammer offers the victim an opportunity to make money fast in a get rich quick scheme. However, they will require the victim to fork over their money first so that they can invest it for them. They will often stress the urgency of the situation and try to pressure the victim into surrendering their money to them so that they can help the victim make a quick profit. Oftentimes, they will have legitimate looking websites which makes it difficult to distinguish from the actual website. One way you can avoid this is by looking for the https in the URL of the website. This indicates a site with secure and encrypted traffic compared to one with just http (without the ‘s’) which is not a secure site for crypto exchanges. Take note that in today’s volatile market it is impossible to guarantee a massive profit in a short period of time. If someone approaches you with such an offer, block them and ignore their message. It is better to be safe than sorry.
General Advice
Do not click on unfamiliar links or attachments
Enable two factor authorisation
Always go through official methods of contact
Do not keep your crypto wallet and bank account permanently linked
Place a hold on your future transactions in case of unusual activity
Only use platforms and mediums that have shown to be reliable and trustworthy
Afterword
While the Eagle AI team remains committed to keeping its community safe from cryptocurrency scams by spreading information and taking action against scammers, it is ultimately up to you to safeguard yourself against those with malicious intent. We are thankful for your support and wish you all the best in your crypto endeavors. Fly high Eagle!
References
Johnson, H. (2024, March 3). What are the most popular crypto scams to watch for in 2024 | time stamped. Time. https://time.com/personal-finance/article/popular-crypto-scams/
Staff in the Office of Technology, Fletcher, E., & Fletcher, E. (2022, August 11). Reports show scammers cashing in on crypto craze. Federal Trade Commission. https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2022/06/reports-show-scammers-cashing-crypto-craze
Tambe, N. (2024, February 23). Top crypto scams in 2024. Forbes. https://www.forbes.com/advisor/in/investing/cryptocurrency/top-crypto-scams/
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