What to Know About Cryptocurrency Scammers

Share This Article

Cryptocurrency scammers are individuals or groups that engage in fraudulent activities with the goal of stealing users’ cryptocurrency. It is important to be aware of their tactics and strategies in order to protect yourself and avoid falling victim to their scams. Here are some important things to know about cryptocurrency scammers:

  1. They use various tactics 

Cryptocurrency scammers use a variety of tactics to trick users, including 51% attacks, phishing scams, Ponzi schemes, and social engineering techniques. They often create fake websites or social media profiles that appear legitimate to lure victims into providing their personal and financial information.

  1. They target new users 

Scammers often target new cryptocurrency users who may be unfamiliar with the technology and may not be aware of the risks and dangers of the ecosystem. They may offer “get rich quick” schemes and offer to help users make large profits quickly, which can be enticing to new users.

  1. They can be difficult to track 

Cryptocurrency scammers often operate anonymously, using pseudonyms or fake identities to avoid detection. 

  1. They can be reported

While cryptocurrency scammers may be difficult to track down, it is still possible to report their activities to authorities or cryptocurrency exchanges. Reporting scams can help prevent future victims and may lead to the recovery of lost funds.

  1. They can be avoided 

The best way to avoid cryptocurrency scammers is to practice caution and due diligence. This includes thoroughly researching any exchange, wallet, or service before using it, avoiding suspicious links and emails, and keeping personal and financial information secure.

It is important to be aware of the tactics and strategies used by cryptocurrency scammers in order to protect oneself and avoid falling victim to their scams. By staying informed and practicing caution, users can help keep their cryptocurrency investments safe and secure.

Unfortunately, there is an inherent risk every time money, including in the world of cryptocurrencies, leaves your account. As cryptocurrencies are not protected by the Federal Deposit Insurance Corporation (FDIC) and there are tons of people investing money, it’s a tempting market to hack. If you’ve invested money into a cryptocurrency in Pittsburgh, or you are planning to do so in the near future, here’s what you should know.

Infrastructure Attack

When hackers attack the infrastructure of cryptocurrencies such as digital wallets, mining services or web host services, they’re able to steal cryptocurrencies. Criminals may also target investors directly via online scams of “social engineering” tactics. They may also use phone-porting tactics, malware and fake wallets, which is why we recommend downloading our safe RockItCoin digital wallet in Pittsburgh and other areas of the United States.

Cryptocurrency infrastructure attacks refer to the various types of cyberattacks that target the underlying technology that supports the functioning of cryptocurrencies. The cryptocurrency infrastructure comprises a decentralized network of computers that maintain a distributed ledger of all transactions. This ledger is known as the blockchain, and it is secured by complex cryptographic algorithms that ensure the integrity of the data. While the blockchain is generally very secure, the decentralized nature of the blockchain also makes it vulnerable to a few types of attacks.

51% Attacks

One of the more common types of infrastructure attacks is the 51% attack. This attack occurs when a group of miners control more than 50% of the computing power on the network. This gives them the ability to manipulate the blockchain by double-spending or reversing transactions, essentially undermining the trust and security of the entire system. By owning 51% of the mining power, one network can alter the blockchain, which is a huge risk. 

Phishing Scams

Phishing scams refer to fraudulent attempts to obtain sensitive information, such as login credentials or private keys. Phishing happens when a scammer is posing as a trustworthy entity, such as a cryptocurrency exchange or wallet provider. These scams can take many forms, including fake websites, emails, or social media posts.

The goal of these scams is to trick unsuspecting users into providing their sensitive information, which the scammers can then use to steal the victim’s cryptocurrency. For example, a phishing email may appear to be from a legitimate cryptocurrency exchange, prompting the user to click on a link and enter their login credentials. The attacker can then use these credentials to log into the victim’s account and steal their cryptocurrency. Phishing scams are a more common form of cybercrime, and they have become increasingly prevalent in the cryptocurrency ecosystem due to the large sums of money involved. Some of the common tactics used in cryptocurrency phishing scams include:

  1. Fake websites: Attackers create fake websites that mimic legitimate cryptocurrency exchanges or wallet providers. These sites often use similar branding and design to the real sites, making it difficult for users to distinguish between the two.
  2. Social engineering: Attackers use social engineering tactics, such as posing as customer support representatives, to gain the trust of victims and convince them to reveal their sensitive information.
  3. Malicious software: Attackers may also use malware, such as keyloggers, to steal sensitive information from victims’ devices.

Lower Your Risk

Falling for scams can be avoided if you take the time to properly educate yourself. If there’s a new coin offering, there may be a fraud around it as it is likely unregulated. Don’t fall for “pre-sale” or other social media promotional items. Bitcoin-stealing malware is another thing of which you should be aware. To combat this, protect your login credentials with two-factor authentication as well as a password manager.

Here are some ways to avoid falling victim to 51% attacks:

  • Use reputable and established cryptocurrencies that have a large number of nodes and miners, which makes it harder for any single group to control the network.
  • Some crypto users recommend monitoring the hash rate of the cryptocurrency network. A sudden increase in the hash rate could indicate a potential 51% attack.
  • Diversify your cryptocurrency holdings across multiple cryptocurrencies to reduce the risk of being affected by a single 51% attack. 

Here are some ways to avoid falling victim to phishing scams:

  • Only use reputable cryptocurrency exchanges and wallet providers.
  • Double-check the URL of any website before entering sensitive information.
  • Do not click on links in emails or social media posts from unknown or suspicious sources.
  • Enable two-factor authentication on all cryptocurrency accounts.
  • Be wary of any unsolicited messages or emails, especially if they contain urgent requests for sensitive information.
  • Use a hardware wallet to store your cryptocurrency, as they are less susceptible to phishing attacks compared to software wallets.

In addition to these measures, it is important to stay informed about the latest developments in cryptocurrency technology, as new scams and attacks are likely to emerge as the technology evolves. By staying vigilant and taking appropriate precautions, users can help protect themselves from cryptocurrency scams and attacks.

If you have questions about how to safely navigate your next cryptocurrency purchase, contact us today! RockItCoin’s digital wallet is a secure, reliable, and easy to use method of storing your cryptocurrency. When it comes to cryptocurrency, educating yourself about the risks and rewards is super important. The market changes constantly, and new technologies are developed every single day. Stay up to date on crypto news, and find the wallet that makes sense for your crypto needs. Whether you need a paper wallet or digital wallet, RockItCoin has options to keep your funds safe!