HOW TO STAY SAFE
Crypto Scams
Scammers create fake online investment trading platforms and investment houses, or crypto exchanges with the intention of stealing your money. They create professional looking marketing material and share posts on social media platforms to entice interest - promising fantastic returns for little investment. Their fake websites or mobile applications are designed to impress with technical layouts that imitate legitimate trading platforms.
The scammers’ platforms may also imbed malware on the device its installed on, which means that other applications and contacts will also be compromised once the application is installed. Another common method of deception is promoting this as an additional passive income stream, where it requires very little effort but delivers massive returns. The scammers play on our need to improve our financial status to achieve their targets.
Victims deposit money and may even be enticed by the scammer to leave any returns/ earnings to grow further or to re-invest it for an even bigger return. Some scammers are so sophisticated, they may even pay returns from the investment, thereby convincing the victim to re-invest or invest a more substantial amount for larger returns.
Crypto scams can lead to massive financial loss, destroys trust in digital finance, can damage business reputation, and it funds organised crime.
The irreversible and anonymous nature of crypto transactions make these scams particularly devastating as funds are seldom recovered.
How To Spot It
These are the red flags you should look out for:
- You receive unexpected phone calls, emails, or messages about crypto investments from people you don't know.
- Scammers like to create a sense of urgency as this gives you less time to think and consider things thoroughly. They tap into your fear of missing out.
- They ask for sensitive information. Legitimate organisations will never ask for confidential information, or your private key to access your wallet or funds.
- They guarantee high returns. Crypto investments always carry risk, so no legitimate organisation would guarantee high profits.
- There's a celebrity/ public figure endorsement. Scammers like to use fake marketing material or videos to impersonate celebrities/ public figures to endorse what they are selling.
- They utilise unusual payment methods. They ask you to make payment via vouchers, cryptocurrency or a link that they will send to you.
- There are delays and lack of access to your funds. Once you have deposited the money, you find there are delays in pay outs, lack of access and feedback to your funds etc.
What To Do
There are steps you can take to empower yourself to fight back against scams:
- Do your own research: It is very important to do your own thorough research before investing in any cryptocurrency. In the event you do wish to invest in crypto, only do so via regulated crypto exchanges. Research the organisation along with the terms and conditions, scam risk management policies and make enquires via formal channels.
- Verify the information: Check official channels and websites, especially when it comes to endorsements by public figures. Visit official websites by searching via your browser, do not click on the links in adverts or messages. You can also scan the website using the Yima URL website scanner before visiting the website to check for any vulnerabilities.
- Stop before you pay: Do not make any payment or share any information until you have done your research and verified the investment or transaction's legitimacy.
- Use reputable channels: Make sure it is a regulated, well-known company/ platform.
- Never share your private key: Your private key is like a password to your crypto wallet and should never be given to anyone.
- Look out for a lack of transparency: Look for ambiguity around the developers or company behind a coin or wallet.
- Implement robust cybersecurity practices: Use strong and unique passwords, do not use public Wi-Fi when banking, transacting or working with confidential information, and implement multi-factor authentication where possible
- Report it: If you have been scammed, please report it immediately to the relevant organisation and/ or authorities, as well as the Yima reporting function below, or the Yima scams hotline.
Be wary of anything that seems 'too good to be true' and always research any crypto opportunity thoroughly before investing. In addition, learn and understand how to track and trace the movement of crypto currency, its security features, and the elements of blockchain technology before investing in the virtual currency market.
Stop. Think. Verify. Don't get scammed!
HOW TO STAY SAFE
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