Reflection on real cases of scams provides valuable information to understand scammers’ tactics and vulnerabilities in the crypto world.
The decentralized nature and quasi anonymous of cryptocurrencies makes this medium of exchange attractive to both legitimate investors and scammers. Even with the new regulations, you still need supervision and financial education.
Antonio Araújo Junior, a lawyer in the field of capital markets and digital law, says that many scams even exploit the lack of knowledge and emotions of investors. It also points out that before betting on projects and platforms related to cryptocurrencies, it must be carried out due diligence, with the support of a specialized law firm in the subject. A recommendation for the new times.
“Education and awareness are also essential tools to avoid being a victim of this type of fraud,” says the lawyer.
- FBI Flags 6 North Korea-Linked Bitcoin Wallets, Urges Crypto Firms to Be Vigilant
Learn about the most common types of scams and how to avoid falling for them:
- Phishing: scammers create Fake websites or emails that look like legitimate services to steal sensitive information such as private keys or login credentials.
Prevention: always check the URL and the certificates of security and never share private keys.
- Ponzi schemes and pyramids: promises of guaranteed high returns are made to attract investors. Initial returns are paid with capital from new investors, and the plan eventually falls apart.
Prevention: be wary of promises of quick and easy earningsin addition to consulting a law firm specialized in investments, digital law and capital markets to issue a legal opinion.
- DeFi protocols, Exactly and Harbor, are hacked in separate attacks
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investment scams: offers for invest in fake or non-existent projects, often promoted through aggressive marketing.
Prevention: A lawyer specializing in the matter can carry out extensive due diligence and issue an opinion. -
Ransomware – Malware that encrypts user files and demands payment in cryptocurrency to unlock them.
Prevention: Keep your software up to date and avoid downloads from untrustworthy sources.
- Pump and dump: price manipulation in which the organizers artificially inflate a cryptocurrency and then sell quickly, causing a sharp drop.
Prevention: Avoid participating in groups that promote these practices and is skeptical of unsolicited investment advice.
- Fake Initial Coin Offerings (ICOs): token sales for a non-existent or fraudulent project.
Prevention: Research the project, the team and the white paper thoroughly before investing, with legal support.
- exchange theft: Intrusion into cryptocurrency trading platforms to steal user funds.
Prevention: use two-factor authentication and store cryptocurrency in cold wallets where possible.
- North Korean hackers have stolen $2 billion in cryptocurrency since 2018
Anthony also claims that analyze real cases of cryptocurrency scams can provide valuable insight into scammers’ tactics and vulnerabilities.
“In any case, it is extremely important to take care of online security, implement research and support systems, and verify before you invest your money.“concludes the lawyer.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
It may interest you:
- FBI Flags 6 North Korea-Linked Bitcoin Wallets, Urges Crypto Firms to Be Vigilant
- DeFi protocols, Exactly and Harbor, are hacked in separate attacks
- North Korean hackers have stolen $2 billion in cryptocurrency since 2018
- Cypher Protocol manages to freeze USD 600,000 in cryptocurrencies stolen in a security attack
- Weekend Wrap: Uniswap Developer Fired, Steadefi Hacker Mixes His Stolen Funds, Zuckerberg Criticizes Elon Musk & More
- Curve Finance vows to refund users after $62 million hack
- Finance Redefined: $1.5B Multichain Hack Investigation, Shibarium Eyes Relaunch, Base and Optimism Join Forces
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