How to Avoid Social Media Fake Crypto Scams

The internet is a wild place, and cryptocurrency only further stirred the pot of confusion. Tons of scams are easy to fall victim to, no matter how advanced you are in navigating crypto and the internet. Is it even possible to avoid these fake crypto social media scams?

If you’re interested in learning more about how to avoid social media fake crypto scams, you’ve come to the right place. Read on as we dive into the various types of scams, what to look for, how to defend yourself from the scams, what to do if you make a mistake, and more. It’s critical to remain safe as you search the internet and use cryptocurrency.

Understand Types of Scams

First, it’s ideal to understand the types of scams you will face. There isn’t just a one-size-fits-all for this trickery - hackers and those with evil intentions will use several methods to get you to fall for their crypto scams. The more you know about them, the better off you will be.

Here are a few common crypto scams:

●      Fake website: Scammers might create a fake crypto website to gather personal information and data.

●      Phishing scams: Phishing scammers will go after private information related to the e-wallet.

●      Pump and dump schemes: Here, fraudsters will inflate a coin on social media, sell all their holdings, then watch as the value crashes.

●      Fake celebrity endorsements: Scammers may use the face or name of a celebrity to boost a scam.

●      Fake apps: Individuals may create fake apps that victims download on their phones.

●      Blackmail and extortion: Some scammers get aggressive and claim exposure of private information unless the owner follows their rules.

●      Giveaway scams: Scammers might promise to match the investor, which they do not.

●      Cloud mining scams: You will rent mining hardware from an investor, who turns out to be a scammer.

These are the most common you will notice online.

Familiarize yourself with these scams and memorize the general tendencies of each item. The more you know them, the easier it will be to avoid finding yourself deep in a troubling crypto lie.

Related: What Are Social Engineering Scams?

Know What To Look For

Of course, some of these scams look like solid deals for you. It’s helpful to understand the types of scams, but it’s also valuable to know what to look for in an offering. There are serious red flags that should cause you to double-check what you are about to do before it’s too late.

Keep an eye out for the following to avoid being scammed:

●      No whitepaper or one that is poorly designed, providing little information about the cryptocurrency

●      Promises you will receive guaranteed returns for your effort

●      Team members that do not have names

●      Any offering of free money

●      Excessive or over-the-top marketing from the team

Anything too good to be true probably is.

Some offerings or cryptos that offer these things might not be a scam. However, it’s always better to be on the safe side when dealing with money or personal data on the internet.

Related: How to Identify Fake Stablecoins

Defend Yourself

You know common crypto scams and what to look for in a potential con. It’s also critical you know how to defend yourself in case you do come in contact with a crypto scam. You don’t want to be helpless in the face of these criminals.

Here are a few ways to keep yourself safe:

●      Protect your keys online by keeping them private and personal

●      If you get a cold call from a crypto person, don’t accept any offer

●      Only download apps if they’re from a reputable platform

●      Watch your wallet and ensure it’s in a secure location

●      Think carefully before making an investment and ensure it’s safe first

●      Take caution before clicking on social media advertisements

●      Do not invest in things you don’t fully understand

●      Research before you buy

●      Avoid items that seem too good to be true

These will keep you safe online.

Always take your time while you’re online. Never rush into things and never agree to participate in an investment with a person who’s offering something impossible or rushing you to make a decision. You can never be too careful with your assets, especially on the internet.

If anyone is ever pressuring you to buy something saying there is a time limit and you have to decide now, know it is probably a scam. A real project will never rush you to invest.

Know What To Do If You Make A Mistake

Of course, everyone is human. It’s possible to know all this information and still fall victim to a cryptocurrency scam. There are a few actions you should take if you figure out you’ve bought into something false.

If you make a mistake, you should talk to your bank if you:

●      Provided personal information and details

●      Used a bank transfer to make a payment

●      Used a debit or credit card to pay

These could all lead to a loss in money on your end. 

The faster you act, the better the outcome on your end. Change every username and password you have access to immediately, preventing additional damage from occurring if they have further access. There are ways to defend yourself if you make an error.

Report Any Scams You See

Although this step isn’t required, it’s helpful to the online community if you report any scams you see. There are a couple spots where you can provide this information.

It’s best to report crypto scams to the Federal Trade Commission, Commodity Futures Trading Commission, U.S. Securities and Exchange Commission, and the Internet Crime Complaint Center. These resources are the most valuable places to contact if you see a scam. 

You should also report scams to social media if you see them on any platform. They should be able to remove the account to prevent further victimization.

Remain Vigilant

Whenever you are online dealing with transactions of any kind, it’s critical to remain vigilant. Scammers are sneaky and have years of experience navigating challenges and outsmarting people. You must be at the top of your game at all times.

Also, remember that everyone makes mistakes. If you fall victim to a scam, report it and act immediately to protect others from falling victim to the same thing.

Related: How to Tell if a Crypto Website Is Legit (Complete Guide)