Since its inception, the crypto space has had to deal with many cases of fraud.
And crypto scams remain popular. Despite increasing security and KYC/AML rules the crypto space still gets rocked from time to time by fraudulent activities.
What do you need to look out for to avoid being a victim? How can you tell a false project, individual or platform in the myriad of crypto projects available today? Kraken throws more light on these questions. The exchange disclosed that they receive calls every week from people who trusted the wrong individual.
The first step to being safe in the crypto space is not to get GREEDY. Do not get distracted by promises of immense riches. These kinds of platforms are known to dish out to unsuspecting individuals. Take a deep breath, step back and try to assess the situation from different perspectives. Most times you will find clear loopholes in their modus operandi.
Next is, Look Before you Leap
True, investing in crypto is exhilarating, it is however not the answer to all your financial woes. The industry is still in its budding stage and there is a lot to learn. A huge vacuum exists between the supply and demand for crypto trading advisors With this in mind, scammers are filling in this gap, concurrently making away with hard-earned funds.
Other things to look out for
Watch out for the “Confidence Man”
This is one of the most popular ways, fraudsters operate. They reach out to unsuspecting individuals most times via phone, email or even social media. Appearing genuine with a website and even testimonials to prove it. At times offering trading advice or too good to be true return on investments (ROI). They are also most times very knowledgeable and try to keep up with a friendly disposition to gain trust. Sometimes even sending a small amount of funds to your crypto account to assure you your funds will be safe. It is important to note that most crypto exchange will not give you a call.
Verify all information
Fraudsters can be convincing, it is important to always remind yourself that if an investment seems too good to be true, it is most likely a scam.
Carry out your own research, beyond looking up a website, search them out on other social media platforms like LinkedIn, Telegram Twitter, etc. You could also contact your resident country’s financial regulatory body to confirm if the platform has the right operational licenses.
Never, no matter how trustworthy they may seem, allow a third party to create a crypto wallet for you. Do not share your account credentials with anyone. Or enable remote desktop access software in your devices.
No exchange will ask for your wallet password so make sure that you don’t fall for such crypto scams.
Altcoin Buzz previously reported that the SEC published several red flags to help identify crypto scam platforms.