Five popular cryptocurrency scams and how to avoid them

According to Reuters, in 2022, U.S. cryptocurrency crime created an estimated loss of $20.1 billion, and the amount of stolen cryptocurrencies rose by 7% from the previous year.  In response to this drastic cybercrime uptick , Cybersecurity expert VPN Overview shared ways in which we can avoid five common cryptocurrency scams.   

  

1. Phishing and email impersonation   

Stolen credentials are the most common cause of data breaches in the US, according to IBM’s 2022 Cost of Data Breach Report.  

Phishing – sending emails with the purpose of obtaining personal information – accounted for 16% of these cybercrimes and represented $4.91 million in losses.  

 These cyber criminals may impersonate cryptocurrency apps, such as Bitcoin. They are likely to issue a “security alert” in an attempt to lure you to a fraudulent site.  Upon reaching the site, you’ll be asked to enter your security and account credentials. This will then allow them to gain illicit access to your cryptocurrency account.  

 How to protect yourself against phishing  

• Be critical before you click on links. More often than not, hackers will make minor changes to URLS, such as grammatical errors, strange wordings, and misspellings.  
    
• Type out the name of a website. By doing this yourself, you can discover whether an email is really from a reputable sender and protect yourself against phishing.   
    
• Before entering any personal information, remember to double check your browser for incriminating evidence. An unlocked padlock in front of the URL, not having ‘https://’ before the full site address and a misspelt website are all signs of phishing.   

  

2. Phone impersonation fraud   

Cyber criminals are able to create false customer support phone numbers for cryptocurrency exchanges, wallets or apps. They are also able to spoof real customer support numbers, which are more likely to lure you into a false sense of security.  

 How to protect yourself against phone impersonation fraud  

• Don’t overlook multifactor authentication information. Two-factor codes add an extra layer of security to your account in case your passwords are compromised.   
    
• Protect your personal information. Don’t share any passwords over email or phone. Instead, you should only enter these into secured parts of legitimate websites.    
    
• Cryptocurrency customer service representatives do not require remote access to your computer. Decline if the scammer requests this to “fix and issue”.   

  

3. Fake cryptocurrency social media giveaways   

There are countless cyber criminals running fake cryptocurrency social media giveaways. They will likely imitate a public figure to promote the competition, guiding you to a fraudulent website which will ask for your personal information.   

  Before continuing with the giveaway, you may be asked to verify your address by sending Bitcoin to the giveaway’s blockchain address. This can lead to you clicking on malicious links, scanning fraudulent QR codes and being scammed a huge amount of money.  

 How to protect yourself against fake cryptocurrency social media giveaways  

• Before clicking on any links, remember to double check the URL. The website will likely be misspelt if the cryptocurrency social media giveaway is a scam.  
    
• Don’t use blockchain address verification. In other words, you should never “verify” your blockchain address by sending Bitcoin or cryptocurrency.  
    
• Do your own research. A quick online search can reveal if the legitimate company is running a cryptocurrency giveaway. Then, you can go ahead and report the fraud.   

  

4. Extortion, sextortion and cryptocurrency  

Extortion continues to threaten consumers and businesses. The latest Hiscox Cyber Readiness Report revealed that 85% of US companies paid a ransom to recover data in 2022. 

  In addition to extortion, cyber criminals may also use sextortion scam tactics. This is when they claim to have accessed your computer, obtained explicit content and threatened to release them if you don’t send money or cryptocurrency to their blockchain address.   

Fraudsters and hackers can also purchase passwords and corresponding emails on the dark web from old data breaches. You might see one of your old passwords in the subject of an email – they’re almost always fraudulent even if these scams can make your heart jump.   

  

How to protect yourself against extortion and sextortion   

• Don’t reply. It’s best to ignore them, mark the email as spam or block the number that has called you and report it to the local authorities.   
    
• Regularly change your passwords. Make sure they’re different across accounts – they should contain uppercase and lowercase letters, symbols and numbers.  
    
• It’s always a good idea to run a malware scan on your device. If you’re unsure how to do this, here are the top five antivirus software picks recommended by VPN Overview. 

  

5. A man-in-the-middle attack   

A man-in-the-middle attack is when a hacker intercepts the data between your device and internet router. This often happens when you’re using public Wi-Fi, although it can happen at home is the hacker is close enough to intercept the signal from your Wi-Fi.  

 This allows cyber thieves to read any data you send, including passwords, login information and private keys. They can also gain access to your cryptocurrencies if you’re logged into a crypto app and drain your accounts, hold information at ransom and so on.   

  

How to protect yourself against a man-in-the-middle attack   

• Think before joining a public network. If you’re not able to use 5G, ask businesses if they provide any Wi-Fi for customers.   
    
• Download a reliable VPN. This will encrypt all data going to and from your device. So if a hacker intercepts your data at the airport, they won’t be able to read it.   
    
• If you’re looking at potential VPNs, VPN Overview recommends NordVPN, which VPN Overview says ranks at the top of their review list when it comes to security and protection.  

–

A spokesperson from VPN Overview commented:

“The rise of cryptocurrency fraud poses a threat for businesses and consumers alike. Cyber criminals are relentless – they will impersonate others and hold information at ransom to illegally obtain cryptocurrencies. By understanding the main cryptocurrency scams, you can avoid them and protect your crypto assets during this turbulent time.”   

For an introduction to VPNs, see the video accompanying this article.

(Source: VPN Overview)

Posted by Richard Webster, Ace News Today   /   Follow Richard on Facebook, Twitter & Instagram