Crypto's Going Mainstream, But How Can You Protect Yourself From Scammers?

Crypto's going mainstream, bitcoin's tail is up and you're overcome by FOMO, or fear of missing out. But how much do you really know about pig-butchering, address poisoning and phishing, or keys and rug-pulls?

Crypto scams are on the rise, and they're defrauding gullible investors across the world, including Hong Kong, to the tune of billions of dollars each year. But what exactly are these scams, and how can you protect yourself from them?

Here's a quick rundown of some of the most common crypto scams and what you can do to avoid them.

Pig-butchering scams

Pig-butchering scams are a type of crypto scam that typically begins with a scammer befriending a victim on social media or through a dating app and building a rapport with them over time.

Once the scammer gains the victim's trust, they will eventually introduce them to a fake crypto investment opportunity, promising huge returns on a small investment.

The victim is then convinced to open an account with the scammer's fake crypto exchange and to deposit funds into the account, which the scammer claims will be used to trade crypto on the victim's behalf and generate the promised profits.

However, once the victim makes the deposit, the scammer disappears with the funds, leaving the victim with nothing but a empty wallet and a broken heart.

To protect yourself from pig-butchering scams, be wary of anyone who you don've met in person who tries to pressure you into making a crypto investment, especially if the opportunity sounds too good to be true.

Never open an account with a crypto exchange that you're not familiar with, and never deposit funds into an account that you don't control. If you're ever unsure about a crypto investment opportunity, consult with a trusted financial advisor before making any decisions.

Address poisoning scams

Address poisoning scams are a type of crypto scam that occurs when an attacker creates a fake address that closely resembles the genuine recipient's address and then sends a very small amount of cryptocurrency to the victim's wallet, causing its address to be recorded in the victim's transaction history.

When a victim copy-pastes an address from its transaction history without verifying it, the funds are sent to the attacker's address instead of the intended recipient's.

To protect yourself from address poisoning scams, save addresses used frequently in your wallet and enable microfiltering to block malicious transfers and minimize the risk of being phished, SlowMist suggests.

Phishing scams

Phishing scams are a type of crypto scam that typically involves a fraudster sending an email or text message that appears to be from a well-known or trusted source, such as a crypto exchange or a government agency, in an attempt to trick the recipient into revealing their personal and financial information, such as their crypto wallet private key or seed phrase.

The email or text message may contain a link to a fake website that looks nearly identical to the real thing, and the fraudster may even use social engineering tactics to pressure the recipient into clicking on the link and entering their information quickly, without thinking.

Once the fraudster has the victim's private key or seed phrase, they can easily access and empty the victim's crypto wallet.

To protect yourself from phishing scams, be wary of any emails or text messages that you receive from an unknown or untrusted source, especially if the message contains a link or attachment.

Never click on a link or open an attachment in an email or text message from someone you don't know, and never enter your personal and financial information on a website that you're not sure is legitimate.

If you're ever unsure about an email or text message that you receive, contact the sender directly to verify its authenticity before taking any further action.

Rug-pull scams

Rug-pull scams are a type of crypto scam that occurs when the developers of a new crypto project hype up the project and its token to attract investors, but then suddenly abandon the project and sell off their tokens, leaving investors with a worthless asset.

Rug-pull scams are often perpetrated on decentralized exchanges (DEXs), where it's easier for fraudsters to list and trade their own tokens without having to go through the stringent vetting process that's typically required on centralized exchanges (CEXs).

To protect yourself from rug-pull scams, only invest in crypto projects that you're thoroughly researched and that you understand well.

Be wary of any crypto project that promises huge returns with little to no risk, and never invest more money than you can afford to lose.

Indem Sie diese Tipps befolgen, können Sie sich vor einigen der häufigsten Krypto-Betrügereien schützen und Ihr hart verdientes Geld sicher aufbewahren.

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